G/L/1112  
G/SG/136  
31 March 2015  
(15-1789)  Page: 1/3  
Council for Trade in Goods  
Committee on Safeguards  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 12.5 OF THE AGREEMENT ON SAFEGUARDS 
TO THE COUNCIL FOR TRADE IN GOODS OF THE MEANS 
OF COMPENSATION REFERRED TO IN ARTICLE 8.1 
OF THE AGREEMENT ON SAFEGUARDS 
ARGENTINA AND COSTA RICA 
(Pounded Rice) 
The following communication, dated 30 March 2015, is being circulated at the request of the 
delegations of Argentina and Costa Rica. 
 
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In accordance with the obligations laid down in Article 12.5 of the Agreement on Safeguards 
to notify the Council for Tr ade in Goods immediately of: 
a. the results of the consultations held with Members having a substantial interest 
as exporters of the product concerned, prior to the application of a safeguard measure, as referred to in Article 12.3; and 
b. the means of compensation for these interested Members, as referred to in Article 8.1 of 
the Agreement on Safeguards; 
and based on the agreed format for notifications (G/SG/1/Rev.1), Argentina and Costa Rica hereby 
submit the following joint notification to the Council for Trade in Goods. 
1  MEASURE AND PRODUCT SUBJECT TO THE MEASURE REGARDING WHICH THERE WAS 
AN AGREEMENT ON AN ADEQUATE MEANS OF TRADE COMPENSATION UNDER ARTICLE 8.1, AND REFERENCE TO THE WTO DOCUMENT THAT NOTIFIED THE 
SAFEGUARD MEASURE 
The measure and the product subject to it regarding which Costa Rica and Argentina reached 
an agreement on trade compensation under Articl e 8.1 consists of the safeguard measure imposed 
b y  C o s t a  R i c a  o n  i m p o r t s  o f  p o u n d e d  r i c e  ( C e n t r a l  A m e r i c a n  H a r m o n i z e d  S y s t e m  ( S A C )  t a r i f f  
subheadings 1006.30.90.91 and 1006.30.90.99), which was notified to the Committee on 
Safeguards and circulated to all WTO Me mbers in notification G/SG/N/10/CRI/1. 
2  MEMBERS THAT AGREED TO TRADE COMPENSATION UNDER ARTICLE 8.1 
Trade compensation under Article 8.1 was agreed between Costa Rica and Argentina. G/L/1112 • G/SG/136 
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  3  TRADE COMPENSATION AGREED BY EACH OF THE MEMBERS INVOLVED 
Costa Rica will grant imports from Argentina the following annual tariff quotas: 
Annual quota volume 
(metric tonnes) Tariff subheadings 
(description) Applicable in-quota 
tariff rate 
3,786 1006.30.90 (pounded rice) 35% 
2,235 1904.90.10 (precooked rice) 0% 
The above quotas will be made available by Costa Rica over the four-calendar year period 
of application of the safeguard measure, starting upon the entry into force of the decree 
establishing the quotas and ending in 2018. 
As the importing country, Costa Rica will be responsible for the quota administration. In no event 
will the allocation mechanism be construed as a violation of the spirit of this agreement. 
Costa Rica will use the following me chanism for administering the quotas: 
The quota volumes will be apportioned among enterprises - including rice processors as well as 
rice traders - having records of imports from Ar gentina in 2014 in the case of pounded rice and 
records of imports from any country of origin in 2014 in the case of precooked rice, and rice 
processors duly registered with the National Rice Growers' Corporation (CONARROZ) that had no 
recorded imports in 2014. 
If, for any reason, the quota volumes are not used in full by the close of a calendar year, 
the remaining portions will be added to the volume of the respective quota for the following 
calendar year. This rule does not apply to unused portions of the quotas in the calendar year 2018. 
In 2015, namely the year in which they are open ed, the quotas will be allocated as follows: 
a. Quota for pounded rice: 80% of the volume is to be allocated equally among applicants 
having records of imports of pounded rice from Argentina in 2014. The remaining 20% is 
to be allocated equally among applicants duly registered with CONARROZ that had no recorded imports of pounded rice from Argentina in 2014. 
b. Quota for precooked rice: 80% of the volume is to be allocated equally among applicants 
having records of imports of precooked rice in 2014. The remaining 20% is to be 
allocated equally among applicants duly registered with CONARROZ that had no recorded 
imports of precooked rice in 2014. 
In 2016, 100% of each quota will be allocated in proportion to each applicant's share of imports 
under the respective quota in 2015. 
In 2017, 100% of each quota will be allocated in proportion to each applicant's share of imports 
under the respective quota in 2016. 
In 2018, 100% of each quota will be allocated in proportion to each applicant's share of imports 
under the respective quota in 2017. 
Since the allocation of each quota in 2016, 2017 and 2018 is based on actual utilization of the 
quota in the immediately preceding calendar year, allocation will take place in the first 30 working days of the year in question. As 2015 is the first year of application of the quotas, the allocation 
process will start upon the entry into force of  the executive decree governing these quotas and 
must be completed within a period of 20 working days. 
In order to encourage full utilization of the quotas, the following penalties will be established: 
a. Applicants that record imports of less than 95% of the apportioned volume 
in a given year will, in the following year, be allocated a quantity not exceeding 
that actually imported. G/L/1112 • G/SG/136 
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  b. Applicants that have recorded imports of less than 95% of the volume apportioned each 
year for two consecutive years forfeit the right to participate in the allocation of the quotas for the following years. 
c. Applicants that have received an allocation for a given year without recording any 
imports forfeit the right to participate in the allocation of the quotas for 
the following years. 
The full quota volume is apportioned each year among eligible importers. Any portions remaining 
after the initial allocation will be distributed among all interested parties that so request following 
the resolution stipulating the initial allocation. 
Return of allocated volumes: The beneficiary of an import quota may return all or part of the share 
allocated to it by applying to the Costa Rican Ministry of Foreign Trade (COMEX) in writing 
before 30 June of the year in which it received the allocation. COMEX will issue a special invitation 
on the last working day in July with a view to  distributing and allocating portions returned, 
including any portions returned after 30 June of the relevant year. COMEX will publish a notice 
in the Official Journal La Gaceta and on the Ministry's official website to announce the availability 
of the remaining portions. However, the full quota volume will be distributed and allocated in the order of submission of applications, i.e. on a first-come, first-served basis. Any subsequent 
portion that may remain or was not included, for any reason, in the special invitation referred to 
above will remain available to interested parties until it is fully allocated, and will be assigned by COMEX on a first-come, first-served basis. 
4  DATE FROM WHICH COMPENSATI ON WILL APPLY FOR ARGENTINA 
Both Parties have agreed that Costa Rica will incorporate this agreement into its domestic 
legislation, by means of an executive decree , within a maximum period of 30 working days 
as from 10 March 2015. 
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