G/STR/N/17/CRI  
23 November  2018 
(18-7397) Page: 1/18 
Working Party on State Trading Enterprises  Original:  Spanish  
 
  
STATE TRADING  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVII:4(A)  OF THE GATT 1994  
AND PARAGRAPH 1 OF THE UNDERSTANDING  ON THE  
INTERPRETATION OF ARTICLE XVII  
COSTA RICA 
The following communication, dated 2 2 November  2018, is being circulated at the request of the 
delegation  of Costa Rica . 
 
_______________  
 
 
Pursuant to the provisions of Article XVII:4(a) of the GATT 1994 and paragraph 1 of the 
Understanding on the Interpretat ion of Article XVII , Costa Rica submits herewi th its notification 
concerning S tate trading enterprises . The notification covers  the Agro-Industrial Sugar Cane League  
(Liga Agrícola Industrial de la Caña de Azúcar , LAICA) for the period  2003-2017; the Costa Rican 
Petroleum Refining Company (Refinadora Costarricense de Petróleo , RECOPE) for 2016 and 2017 ; 
the Livestock Promotion Corporation ( Corporación Ganadera , CORFOGA) for the period 1998 -2018; 
the Costa Rican Coffee Institute ( Instituto del Café de C osta Rica , ICAFE) for the period 1995 -2018; 
and the National Rice Growers Corporation ( Corporación Arrocera Nacional , CONARROZ) for the 
period 2002 -2018. G/STR/N/17/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 t o public law in the exercise of  
its legal p owers and duties  and to private law in the conduct of its marketing and other corporate 
activities . 
2  REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING STATE TRADING 
ENTERPRISE  
LAICA was created under Law No.  3579 of 4 November  1965. This law was amended b y the Organic 
Law on Sugar Cane Agriculture and the Sugar Industry (Law No.  7818 of 2 September  1998) 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 between 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 t he production 
of sugar cane and the manufacturing 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 is managed by a Board of Dir ectors made up of eight members, comprising 
the Minister  of Agricultur e and Livestock, the Minister  of the Economy, Industry and  Trade, 
three  members appointed by the sugar industry , and th ree appointed by the cane sector.  
The Marketing 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 proce ssing. 
Regarding  the quality control and marketing of the product, Law No. 7818 of 2 September 1 998 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 sugar export s 
(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, multiplied 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 p roduction quota for domestic consumption, 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 sugar 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/17/CRI  
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  Before auth orizing sugar exports, 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 international 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 internati onal market prices.  
In addition to registering their contracts, exporters must also ensure they are entered in the register 
kept by LAICA for that purpose , and to that end must provide general data concerning the natural  
or legal person in question . 
4  STATIS TICS  
Statistical information is attached in Annex I. 
5  REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
There has been foreign trade, as shown in the statistical information . 
   
  G/STR/N/17/CRI  
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ANNEX I: LIGA AGRÍCOLA INDUSTRIA DE LA CAÑA DE AZÚCAR (LAICA)  
 
TABLE I  
STATE TRADING: STATISTICAL INFORMATION , IMPORTS  
LAICA DOES NOT IMPORT SUGAR  
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  
(₡ per 50 kg sack 
of sugar ) Average representative 
domestic sales price  
(₡ per 50 kg sack of sugar ) Average export price  
(US$ per 50 kg sack 
of sugar ) National  
production ** 
(50 kg sacks ) 
Sugar  
(1701) 2003-2004 
2004-2005 
2005-2006 
2006-2007 
2007-2008 
2008-2009 
2009-2010 
2010-2011 
2011-2012 
2012-2013 
2013-2014 
2014-2015 
2015-2016 
2016-2017 3,751,155  
3,441,656  
2,897,015  
2,691,318  
2,158,957  
1,993,269  
3,077,583  
2,150,471  
2,434,153  
3,658,551  
4,220,794  
4,311,804  
4,301,260  
5,237,059  3,751,155  
3,441,656  
2,897,015  
2,691,318  
2,158,957  
1,993,269  
3,077,583  
2,150,471  
2,434,153  
3,658,551  
4,220,794  
4,311,804  
4,301,260  
5,237,059  7,885.0 0 
8,750.0 0 
10,291.4 6 
11,239.8 4 
10,945.9 7 
12,008.3 9 
13,438.1 7 
13,751.6 3 
15,092.6 1 
15,325.9 7 
15,609.9 6 
15,136.6 1 
14,646. 99 
14,940. 97 11,387  
12,519  
13,992  
14,362  
14,831  
16,819  
17,589  
17,989  
19,392  
20,073  
21,460  
22,000  
21,709  
21,553  8.76 
11.89 
14.33 
17.06 
16.81 
18.24 
24.68 
31.15 
28.27 
23.44 
22.32 
20.16 
15.87  
23.91  8,009,080  
7,822,749  
7,398,712  
8,060,882  
7,203,408  
6,992,552  
7,549,197  
6,860,515  
8,018,300  
8,867,900  
9,319,689  
9,001,398  
8,607,369  
8,734,800  
 
Source : LAICA. Preliminary figures for the period 2016 -2017.  
* 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 %).   
  G/STR/N/17/CRI  
- 5 - 
 
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  
(1701)  2003-2004 
2004-2005 
2005-2006 
2006-2007 
2007-2008 
2008-2009 
2009-2010 
2010-2011 
2011-2012 
2012-2013 
2013-2014 
2014-2015 
2015-2016 
2016-2017 8,009,080 
7,822,749 
7,398,712 
8,060,882 
7,203,408 
6,992,552 
7,549,197 
6,860,515 
8,018,300 
8,867,900 
9,319,689 
9,001,398 
8,607,369  
8,734,800  8,009,080 
7,822,749 
7,398,712 
8,060,882 
7,203,408 
6,992,552 
7,549,197 
6,860,515 
8,018,300 
8,867,900 
9,319,689 
9,001,398 
8,607,369  
8,734,800  4,105,537 
4,364,030 
4,444,892 
4,683,503 
4,586,259 
4,566,742 
4,723,908 
4,735,674 
4,834,910 
4,804,036 
4,807,820 
4,646,131 
4,661,688  
4,284,966  4,105,537 
4,364,030 
4,444,892 
4,683,503 
4,586,259 
4,566,742 
4,723,908 
4,735,674 
4,834,910 
4,804,036 
4,807,820 
4,646,131 
4,661,688  
4,282,967  
 
Source : LAICA. Preliminary figures for the period 2016-2017.  
* 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 tot al (LAICA represents over 95 %). 
 G/STR/N/17/CRI  
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  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 priva te law.  
The list of products marketed by RECOPE and their tariff headings is as follows : 
Product description  Tariff heading  (*) 
Crude oil  2709.00.10.00 .00 
95 RON g asoline  2710.12.30 .00.22 
91 RON g asoline  2710.12.30.00.21  
Diesel fuel  2710.19.21. 00.90 
Fuel oil 3%  2710.19.23.00 .00 
Aviation gasoline (AvGas)  2710.12.20.00 .00 
Jet fuel  2710.12.90. 00.11 
Asphalt  2713.20.00.00 .00 
Liquefied petroleum gas ( LPG) 2711.12.00.00 .10 
Methyl tertiary -butyl ether (MTBE)  2909.19.00.00 .00 
   
  In accordance with  Decree No. 40858 -H of 3 1 January 2 018. 
  (*) Amendment in effect as of 1 May 2 017 (12 digits) . 
 
2  REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING STATE TRADING 
ENTERPRISE  
RECOPE has the exclusive right to manage the State monopo ly on the importation, refining and 
wholesale  distribution of crude oil and derivatives in order to satisfy domestic demand . This right is 
derived from Law No. 5508 of 8 April 1974 and Law No. 7356 of  24 August  1993 (ratification of the  
above -mentioned Sta te 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 affect inflation . It follows that, through the  intermediary of  RECOPE, the 
State performs an important social function, namely to maint ain macroeconomic stability . Likewise, 
RECOPE must take proper account of the needs relating to  the country's energy programme . 
3  DESCRIPTION OF THE FUNCTIONING OF THE STATE TRADING ENTERPRISE  
The monopoly held by RECOPE consists firstly of the exclusive rig ht 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 pu rposes of establishing the distribution monopoly, in terms of  the following 
minimum volumes : 
Products  Minimum  sales volume  
(litres)  
Regular gasoline  1,900 
Premium gasoline  1,900 
Diesel fuel  1,900 
Kerosene  1,900 
Bunker oil  1,900 
Heavy diesel fuel  1,900 G/STR/N/17/CRI  
- 7 - 
  Products  Minimum  sales volume  
(litres)  
Asphalt  1,900 
Asphaltic emulsion  1,900 
Liquefied petroleum  gas (LPG) 757 
Aviation gasoline (Av Gas) 1,900 
Jet fuel  1,900 
Heavy naphtha  1,900 
Light naphtha  1,900 
IFO 380  25,000 
IFO 180 25,000 
Article 4 of the Regulation under Law No. 6588 (law regulating the activity, objectiv es 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 t o hydrocarbon exploration and production (nat ional 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 n ational oilfields must 
be sold to RECOPE on a priority basis . 
Furthermore, Article 6 of Law No. 6588 of 3 0 June 1981 provides that RECOPE may participate 
individually or jointly in tendering procedures organized by the Directorate -General of Hydrocarbons 
for the exploration and production of hydro carbons, in accordance with the provisions  of the 
Hydrocarbons Law.  
RECOPE imports, processes and markets all the crude oil and deriv atives consumed domestically in  
Costa Rica and exported (the country does not produce oil) . On the basis of its yearly demand  
estimates, RECOPE buys crude oil and finished products on the international market . Import  
quantities are determined on the basis of local demand and th e refining and storage capacity of 
RECO PE plants . Export levels are set principally in th e 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 pr ices 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 e njoys exclusively or  in conjunction with all  
other public entities) , the 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 t hat the total amount does not exceed US$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.  
Lastly, RECOPE has an obligation, w hich 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 effe ctive supply at that level and  development of 
the activity is affected 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 R egulatory 
Authority (ARESEP ), in accordance with Laws  No. 6588 and No. 7593. Export sales prices are set by G/STR/N/17/CRI  
- 8 - 
  RECOPE on the basis of prescribed formulae which take both local prices and prices on other markets 
into co nsideration ; 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 exports, 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. 
 
5  REASON WHY NO FOREIGN TRADE HAS TAKEN PLACE  
There has been foreign trade, as shown in the statistical information . 
   
  G/STR/N/17/CRI  
- 9 - 
 
 
ANNEX II: REFINADORA COSTARRICENSE DE PETRÓLEO (RECOPE)  
 
TABLE I.A  
 
STATE TRADING: STATISTICAL INFORMATION, IMPORTS  
 
2016 
 
Product description  Tariff heading  Total quantity 
imported  
 
(m3) Average import 
price  
(US$/ m3) Average domestic sales  
price  
(US$/ m3) Mark -up 
(US$/ m3) National 
production  
and blending  
(m3) 
95 RON gasoline  2710.12.30.00.22  643,117  386 874.11  --- - 
91 RON gasoline  2710.12.30.00.21  604,615  355 823.30  --- - 
Diesel fuel  2710.19.21.00.90  1,191,123  346 639.16  --- - 
Fuel oil 3%  2710.19.23.00.00  101,059  215 247.09  --- - 
Fuel oil 1%   
42,837  227 291.08  --- - 
Aviation gasoline  
(AvGas)  2710.12.20.00.00  1,545  845 1,472.63  --- - 
Jet Fuel  2710.12.90.00.11  242,355  349 535.72  --- - 
Asphalt  2713.20.00.00.00  83,071  219 361.04  --- - 
LPG 2711.12.00.00.10  293,031  194 229.55  --- - 
Methyl tertiary -butyl 
ether (MTBE)  2909.19.00.00.00  10,105  495 n/a --- - 
Source:  RECOPE, Division for International  Trade in Fuel.  
  Columns 5 and 6 : RECOPE, Customer Service Department.  
 
Note:   "-" indicates zero . 
   "---" indicates not applicable.  
 
Sales price refers to the RECOPE Group price.  
n/a: Sales data are unavailable (MTBE is used as oxygenate additive in gasoline).    
  G/STR/N/17/CRI  
- 10 - 
 
TABLE I.B  
 
STATE TRADING: STATISTICAL INFORMATION, IMPORTS  
 
2017 
 
Product 
description  Tariff heading  Total quantity 
imported  
(m3)  Average import  
price  
(US$/m3)  Average domestic sales 
price  
(US$/m3)  Mark up  
(US$/m3)  National 
production  
and blending  
(m3)  
95 RON gasoline  2710.12.30.00.22  699,568  433 958.80  --- - 
91 RON gasoline  2710.12.30.00.21  645,710  411 904.41  --- - 
Diesel fuel  2710.19.21.00.90  1,247,103  417 732.96  --- - 
Fuel oil 3%  2710.19.23.00.00  123,890  304 356.33  --- - 
Fuel oil 1%   
- -  --- - 
Aviation gasoline 
(AvGas)  2710.12.20.00.00  1,595  919 1,562.28  --- - 
Jet fuel  2710.12.90.00.11  279,434  432 618.97  --- - 
Asphalt  2713.20.00.00.00  105,118  314 377.57  --- - 
LPG 2711.12.00.00.10  321,996  264 310.96  --- - 
Methyl tertiary -
butyl ether (MTBE)  2909.19.00.00.00  11,009  586 n/a --- - 
Source:  RECOPE, Division for International Trade in Fuel.  
  Columns 5 and 6 : RECOPE, Customer Service Department.  
 
Note:   "-" indicates zero . 
  "---" indicates not applicable.  
 
Sales price refers to the RECOPE Group price.  
n/a: Sales data are unavailable (MTBE is used as oxygenate additive in gasoline).    
  G/STR/N/17/CRI  
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TABLE II  
 
STATE TRADING: STATISTICAL INFORMATION, EXPORTS  
 
RECOPE MADE NO EXPORTS IN 2016 OR 2017  
 
TABLE III.A  
 
STATE TRADING: STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
2016 
 
Product description  Tariff heading  Domestic purchases  
by RECOPE  
(m3)  National production  
and blending  
(m3)  Domestic sales  
by RECOPE  
(m3)  National  
consumption  
(m3)  
Regular gasoline  2710.12.30.00.21  - - 625,416  625,416  
Premium gasoline  2710.12.30.00.22  - - 631,255  631,255  
Diesel fuel  2710.19.21.00.90  - - 1,209,379  1,209,379  
Kerosene  2710.19.11.00.00  - - 8,346  8,346  
Bunker oil  2710.19.22.00.00  - - 110,100  110,100  
Jet A-1 2710.12.90.00.11  - - 245,503  245,503  
Aviation gasoline  (AvGas)  2710.12.20.00.00  - - 1,505  1,505  
Heavy naphtha  2710.19.13.00.10  - - 316 316 
IFO 380  2710.19.22.00.00  - -   
LPG 2711.12.00.00.10  - - 292,274  292,274  
Asphalt  2713.20.00.00.00  - - 78,182  78,182  
Source:  RECOPE, Sales Department.  
Note:   "-" indicates zero.    
  G/STR/N/17/CRI  
- 12 - 
 
TABLE III.B  
 
STATE TRADING: STATISTICAL INFORMATION, DOMESTIC ACTIVITIES  
 
2017 
 
Product description  Tariff heading  Domestic purchases  
by RECOPE  
(m3)  National production  
and blending  
(m3)  Domestic sales  
by RECOPE  
(m3)  National  
consumption  
(m3)  
Regular gasoline  2710.12.30.00.21  - - 629,864  629,864  
Premium gasoline  2710.12.30.00.22  - - 655,493  655,493  
Diesel fuel  2710.19.21.00.90  - - 1,230,332  1,230,332  
Kerosene  2710.19.11.00.00  - - 7,984  7,984  
Bunker oil  2710.19.22.00.00  - - 109,752  109,752  
Jet A-1 2710.12.90.00.11  - - 245,028  245,028  
Aviation gasoline (AvGas)  2710.12.20.00.00  - - 1,628  1,628  
Heavy naphtha  2710.19.13.00.10  - - 66 66 
IFO 380  2710.19.22.00.00  - -   
LPG 2711.12.00.00.10  - - 310,684  310,684  
Asphalt  2713.20.00.00.00  - - 104,397  104,397  
Source:  RECOPE, Sales Department.  
Note:   "-" Indicates zero.  G/STR/N/17/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 revenue generated by a mandatory payment that is required for each animal slaughtered 
for domestic consumption, and for imports of bovine meat and exports of l ive cattle . The information 
concerning CORFOGA is therefore being submitted for transparency purposes 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 GATT 1994 . For 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 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 activity, 
and increased productivity . The law also seeks to promote and support the technological and 
entrepreneurial restructuring of the livestock sector and the various se gments 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 ai ms 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 enjoys 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 slaug htered 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 Ministry of Agriculture and Livestock, participates in the 
preparation and implementation of plans, programmes and projects to promote bovine livestock . In 
this respect it:  
 
• Generates, c ompiles, 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 the genetic heritage of bovine livestock ; and 
• Fosters and supports livestock farming, through agreements, loans or donations  
 G/STR/N/17/CRI  
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  4  STATISTICS  
Not applicable, as CORFOGA does not market, exp ort 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/17/CRI  
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  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
 
INSTITUTO DEL CAFÉ DE COSTA RICA (ICAFE)  
 
1  ENUMERATION OF ST ATE 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 (café oro)  0901.1130  
 
2  REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING 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 ENTERP RISE  
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 produ ction 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 ra nking, 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 appoint 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 a spects 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, determining 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 entities that participat e 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 Costa 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 
products  
• Financing trans actions for producers  
• Researching and developing agricultural and industrial technology relevant to coffee 
production and processing  
 G/STR/N/17/CRI  
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  Individuals may export coffee once ICAFE has approved the respective contract . The aim of such 
approval is to guarantee th e 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 PLACE  
ICAFE  is authorized to participate in international trade, but, in practice, does not engage in any 
commercial activity.  G/STR/N/17/CRI  
- 17 - 
  REPLIES TO THE QUESTIONNAIRE ON STATE TRADING  
 
CORPORACIÓN ARROCERA NACIONAL (CONARROZ)  
 
1  ENUMERATION OF STATE TRADING ENTERPRISES  
The Natio nal Rice Growers Corporation ( Corporación Arrocera Nacional , CONARROZ) is a non -State 
public entity created under Law No.  8285 of 3 0 May 2 002. 
 
 CONARROZ markets the following products:  
 
Tariff heading  Description  
1006 Rice  
1006.10  Rice in the husk (paddy or rough)  
1006.10.90  Other  
 
2  REASON AND PURPOSE FOR ESTABLISHING AND MAINTAINING STATE TRADING 
ENTERPRISE  
Rice is one of the most widely consumed food products in Costa Rica . CONARROZ was therefore 
created to promote all 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 ensure the rational, fair and order ly 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 preventing 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 typ e of information 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, a nd 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, within 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 an d 
training projects 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 p roduction shortfalls will occur . 
The results of these studies must be notified to the MAG or the MEIC with a view to the determination 
of supply requirements and the opening of a quota.  
 G/STR/N/17/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 previous rice year.  
 
When importing clean, dry in -the-husk or pounded rice, a contrib ution 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 . In 201 7, pursuant to 
Executive Decree No. 39930 MAG -MEIC-COMEX, CONARROZ was authorized to import 63,000 metric 
tonnes of rice under tariff subheading 1006.10.90 at a 0 % tariff rate.  
 
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.  
 
__________