G/SCM/N/401/CRI   
13 October 2023  
(23-6925) Page: 1/14 
Committee on Subsidies and Countervailing Measures  Original: Spanish  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1 OF THE GATT 1994 AND ARTICLE 25 
OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES  
COSTA RICA 
The following communication, dated and received on 12 October 2023, is being circulated at the 
request of the delegation of Costa Rica.  
 
_______________  
 
 
Costa Rica hereby submits this new and full notification pursuant to Article  XVI:1 of the GATT  1994 
and Article  25 of the Agreement on Subsidies and Countervailing Measures.  
  G/SCM/N/401/CRI  
 
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  Contents  
1  THE DUTY -FREE ZONE REGIME  ................................ ................................ .....................  3 
2  THE INWARD PROCESSING REGIME  ................................ ................................ ...........  10 
3  FISHING  ................................ ................................ ................................ .....................  12 
A. FUEL SUBSIDY PROGRAMME (DIFFERENTIATED PRICING)  ................................ ..................  12 
B. EXEMPTION FROM THE SINGLE TAX ON FUEL  ................................ ................................ ... 14 
 
  G/SCM/N/401/CRI  
 
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  1  THE DUTY -FREE ZONE REGIME  
1. Description of the subsidy  
 
The Duty -Free Zone Regime is the set of incentives and benefits offered by the State to enterprises 
making new investments in Costa Rica, subject to compliance with the requirements and obligations 
laid down in Duty -Free Zone Regime Law No. 7210, the amendments thereto, and its implementing 
Regulations. The Regulations establish the definition of new investments in the country. The 
establish ment location of a group of enterprises operating as beneficiaries of this Regime is called 
a "duty -free zone", which is required to be a defined area, without a resident population, authorized 
by the Executive to operate in this capacity.  
 
2. Period of notif ication  
 
This notification provides a description of the Duty -Free Zone Regime for the calendar years 
2021 and 2022.  
 
3. Policy objective  
 
The primary objective of Law No. 7210 is to foster the socio -economic development of Costa Rica 
by attracting foreign d irect investment, encouraging domestic investment and promoting exports. 
The duty-free zone is an important government policy tool for raising the standard of living of the 
population of Costa Rica by creating sources of quality jobs and supporting human d evelopment, 
while also taking into account the less -developed areas of the country, mostly located outside the 
Greater Metropolitan Area (GAM) . This type of regime is conducive to the establishment of 
enterprises engaged in a wide range of highly sophistic ated operations and production processes 
that contribute to the generation of wealth and transfer of technological know -how and increase 
the country's international competitiveness. Moreover, this Regime promotes the establishment of 
links with enterprises  providing goods and services at the national level, and, in certain cases, even 
allows for enterprises providing goods to be admitted to the Duty -Free Zone Regime. This 
strengthens both the promotion of employment and the country's development.  
 
4. Background and authority  
 
• Duty-Free Zone Regime Law No. 7210 of 23 November 1990 (full text attached as an 
Annex to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002) and the 
amendments thereto . 
• Regulations implementing the Duty -Free Zon e Regime Law - Executive Decree No. 34739 -
COMEX -H of 29 August 2008 (full text attached as an Annex to Costa Rica's notification in 
document G/SCM/N/211/CRI of 12 July 2010) and the amendments thereto . 
• General Customs Law No. 7557 of 20 October 1995, Secti on I, Chapter V (Duty -Free Zone 
Regime1), and the amendments thereto . 
• Regulations implementing the General Customs Law - Executive Decree No. 25270 -H of 
28 June 19962, Chapter X (Duty -Free Zone Regime), and the amendments thereto . 
• Law on Strengthening Te rritorial Competitiveness to Promote the Attraction of Investment 
outside the Greater Metropolitan Area No. 10234 of 4 May 2022 . 
• Amendments to the Regulations Implementing the Duty -Free Zone Regime Law - 
Executive Decree No. 43934 -COMEX -H of 15 March 2023.  
 
1 The parts referred to are  attached as Annexes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archives of the Rules 
Division.  
2 The parts referred to are attached as Annexes to Costa Rica's notification in  document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archives of the Rules 
Division.  G/SCM/N/401/CRI  
 
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  5. Form of the subsidy  
 
The subsidy consists of exemption from payment of taxes and consular fees on imports for 
enterprises situated in duty -free zones. The incentives granted by this regime, as set forth in Duty -
Free Zone Regime Law No. 7210, are:  
 
(a) Inward clearance into the duty -free zone of raw materials, manufactured and semi -
manufactured products, components and parts, packing materials and containers 
and any other goods required for the operations of the enterprise, without payment 
of any taxes o r consular fees on their import. Exemption from all import or internal 
taxes on packing and packaging materials and containers, as well as on computer 
equipment and electronic waste and any other waste resulting from the enterprise's 
activities in the duty -free zone provided that these packing and packaging materials, 
containers and waste are to be recycled or reused.  
(b) Inward clearance into the duty -free zone of machinery, equipment, accessories and 
spare parts for such machinery and equipment, without payme nt of any taxes or 
consular fees on their import. Likewise, exemption from all import taxes and consular 
fees on the import of motor vehicles required for their operation, production, 
administration and transport activities. Machinery or equipment that has  been 
imported duty -free more than five years previously may be freely transferred, used 
for a different purpose or brought into national territory, without the requirement to 
pay any tax.  Vehicles purchased by enterprises covered by the Duty -Free Zone 
Regime may transit via the national territory; the enterprises shall obtain the 
appropriate permits for that purpose from the relevant authorities. If persons 
operating within national customs territory purchase such vehicles, they shall pay 
the relevant taxe s for both transit and import into the national territory, with no 
exemption from payment.  
(c) Exemption from all tax and consular fees payable on imports of fuel, oil and 
lubricants required for the operation of the enterprises. This exemption shall be 
grante d solely where these goods are not produced within the country with the 
required quality, quantity and timeliness. The Ministry of Econom ic Affairs , Industry 
and Trade shall grant prior authorization for imports of these items.  
(d) Exemption from all taxes rel ating to the export or re -export of products. This 
exemption shall be granted for the re -export from the zones of production 
machinery and equipment that entered pursuant to the Law.  
(e) Exemption for a period of 10 years from commencement of the operations fr om 
payment of taxes on capital and net assets, land tax and tax on the conveyance of 
real estate.  
(f) Exemption from sales and consumption tax on purchases of goods and services.  
(g) Exemption from all tax payable on remittances abroad.  
(h) Exemption from all taxes on  profits, and any other taxes for which the tax base is 
determined according to gross or net earnings, dividends paid to shareholders, or 
revenue or sales, according to the following distinctions:  
• For enterprises based within the Greater Metropolitan Area (GAM), the exemption 
shall be 100% for a period of up to eight years, and 50% for the following 
four years.  
• For enterprises based outside the GAM, the exemption shall be 100% for a period 
of up to 12 years, and 50% for the following six years.  
The duration s shall be calculated from the starting date of the production operations 
of the beneficiary enterprise, provided that that date is no more than three years 
after the publication of the relevant Executive Resolution . In the definition of "within" G/SCM/N/401/CRI  
 
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  and "outs ide" the GAM, the Foreign Trade Promotion Agency (PROCOMER) shall have 
regard to the rules laid down by the Ministry of National Planning and Economic 
Policy (MIDEPLAN) for this purpose.  
(i) Exemption from all municipal tax and business tax for a period of 10 years. The 
enterprises covered by this Article shall be required to pay for the municipal services 
they use. In this situation, the municipality in question shall be entitled to charge 
up to double the tariffs laid down by law for these services. Notwithst anding the 
foregoing , enterprises based in duty -free zones shall be entitled to commission 
these services from any natural or legal person.  
(j) Exemption from all taxes on the import or export of commercial or industrial 
samples, subject to prior authorization  from PROCOMER.  
(k) To enhance their business operations, enterprises covered by the Duty -Free Zone 
Regime may freely execute all kinds of deeds and contracts in foreign currency - in 
which case the amounts must be paid in that currency - with respect to their  
international transactions or transactions with other enterprises established under 
the Duty -Free Zone Regime.  
The enterprises covered by the Duty -Free Zone Regime shall be freely entitled to 
hold and manage the foreign currency they acquire according to  the provisions of 
the preceding paragraph or arising from their ordinary business activity, and they 
shall be exempted from application of the foreign exchange regulations. The Central 
Bank of Costa Rica shall lay down rules for this entitlement and activ ities deriving 
therefrom.   
(l) Enterprises based in duty -free zones located in "relatively less developed" areas 
according to the classification applied by the Ministry of Foreign Trade (COMEX), 
subject to a report by MIDEPLAN, shall be entitled to receive a c redit equal to 10% 
of the amount paid as wages and salaries during the previous year, after deduction 
of the amount paid to the Costa Rican Social Security Fund (CCSS) on those wages 
and salaries, in accordance with the payroll reported to the CCSS. These enterprises 
may apply for coverage under this Law within five years after the entry into force 
of the provisions of this paragraph. The entitlement shall be granted for five years, 
and shall decrease by two percentage points per annum, through to its termi nation 
in the last year. This credit shall be charged against the national budget in the 
manner laid down in the Regulations implementing this Law. Enterprises wishing to 
operate as beneficiaries under this Law shall apply by no later than 
31 December  1999. The entitlement shall last for five years; for the first four years 
it shall decrease by two percentage points per year, and it shall terminate in the 
last year. This credit shall be charged against the National Budget, and shall be in 
the form of regist ered negotiable securities.  
(m) Export processing enterprises operating as beneficiaries of the Duty -Free Zone 
Regime which, upon completion of four years of operation under that Regime, 
reinvest in the country may be granted an additional exemption from payment of 
income tax, according to the following criteria:  
• If the reinvestment is in excess of 25% of the original investment, the exemption 
shall be for one additional year . 
• If the reinvestment is in excess of 50% of the original investment, the exemptio n 
shall be for two additional years . 
• If the reinvestment is in excess of 75% of the original investment, the exemption 
shall be for three additional years . 
• If the reinvestment is in excess of 100% of the original investment, the exemption 
shall be for four additional years.  G/SCM/N/401/CRI  
 
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  The additional exemptions shall be for 75% of the income tax payable. The 
additional exemptions granted in this context shall apply as from the end of the 
eighth year of operations, without prejudice to the exemptions for the final p eriod 
of four years initially granted, which shall come into effect on the expiry of the 
additional exemption period referred to here. In the case of enterprises based in 
"relatively less developed" zones, the additional exemption shall apply on 
completion  of the twelfth year of operations, without prejudice to the exemptions 
for the final period of six years initially granted, which shall come into effect on the 
expiry of the additional exemption period. The reinvestment giving rise to the 
additional exemp tion must be made after completion of the fourth year and before 
the start of the eighth year of operations under the Duty -Free Zone Regime. The 
additional exemption may only be granted to enterprises whose original investment 
in fixed assets was at least two million United States dollars (USD  2,000,000.00).  
 
In addition , companies based outside the GAM  shall, pursuant to  the provisions of Law No. 10234, 
receive  the following incentive:  
 
(n) Partial exemption, for a fixed period of time, in respect of payment o f the following 
social charges:  
• Exemption from the 5% payment to the Social Development and Family 
Allowances Fund (FODESAF) during the first five years of operation.  
• Single contribution to the Working Capital Fund of the Banco Popular y de 
Desarrollo Comu nal of 0.25% per month on the remuneration referred to in 
Article 5(a) of Organic Law of the Banco Popular y de Desarrollo Comunal No. 
4351, during  the first 10 years of operation.  
• Exemption from the contribution to the Joint Social Welfare Institute (IMAS) 
during the first five years of operation.  
• Contribution to the National Training Institute (INA) of 1% of the total monthly 
payroll  during the first 10 years of operation.  
6. Beneficiaries and mechanism  
 
Enterprises within the following categories qualify for the Duty -Free Zone Regime:  
 
(a) Export processing industries that produce, process or assemble for export or re -export.  
(b) Export trading enterprises, with no production activity, which merely handle, re -pack or 
re-distribute non -traditional goods and products for export or re -export.  
(c) Service enterprises that comply with the Strategic Eligibility Index for Service 
Enterprises (IEES). Banking, financial and insurance entities based in duty -free zones 
do not qualify for the benefits  of this Regime. Natural or legal persons engaged in 
providing professional services do not qualify for the Regime either.  
(d) Enterprises administering industrial parks intended for occupation by enterprises 
operating under the Duty -Free Zone Regime, provide d that the parks meet the minimum 
conditions in terms of infrastructure and the availability of services as set out in the 
Regulations implementing this Law. Such enterprises shall qualify for the exemptions 
specified above, provided that the industrial pa rk developed by them is occupied solely 
by enterprises covered by the Duty -Free Zone Regime. If enterprises not covered by the 
Duty-Free Zone Regime set up in the park, the administrator shall forfeit the exemption 
referred to in Article 20(g) of the Duty -Free Zone Regime Law from that time, and the 
other exemptions shall be reduced on a pro rata basis, in the same way as in the case 
of sales in the national customs territory pursuant to Article 22 of the Duty -Free Zone 
Regime Law.  
(e) Enterprises or entities e ngaged in scientific research to raise the technological level of 
the country's industrial or agribusiness activity and foreign trade.  G/SCM/N/401/CRI  
 
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  (f) Enterprises operating shipyards or dry or floating docks for the construction, repair or 
maintenance of ships.   
(g) Processi ng industries that produce, process or assemble goods, irrespective of whether 
or not they export, provided that they meet the requirements laid down in Article  21bis 
of the Duty -Free Zone Regime Law.  
Enterprises engaged in mining, exploration or extraction of hydrocarbons and the 
production or sale of arms and ammunition containing depleted uranium, and companies 
engaged in the production or sale of any type of arms are not eligible for the Duty -Free 
Zone Regime. Likewise, enterprises that generate electric power, unless the power is for 
their own consumption, shall not be eligible.  
(h) Human health services enterprises based  outside the Greater Metropolitan Area (GAM).  
(i) Enterprises located outside the GAM supplying inputs for other enterprises benefiting 
from the Duty-Free Zone Regime under Article 17(f), located inside or outside the GAM.  
(j) Enterprises developing sustainable adventure parks, located outside the GAM.  
There are various requirements for the gra nting of Regime status:  
 
(a) Any natural or legal person wishing to obtain Duty -Free Zone Regime status is 
required to submit the relevant application to PROCOMER in digital format using the 
form available to users on the site http://www.procomer .com and provide the 
requisite detailed information, in accordance with the relevant instructions issued 
by PROCOMER, according to the terms and conditions defined in the Regulations.3   
(b) Within two working days of submission of the application, PROCOMER shall notify 
the applicant of any missing documentation, or of any requirement that has not 
been met relating to the application for admission to the Regime, granting a period 
of 10 working  days for compliance with the requirements.4  
(c) Within not more than one working day of receipt of all the required information, the 
competent technical unit of PROCOMER shall forward an opinion to the Board of 
Directors or to the entity to which the Board of Directors has delegated this role; 
the opinion shall include an assessment of the aspects set out in these Regulations 
and a recommendation, with supporting arguments, on whether or not Regime 
status should be granted to the applicant enterprise. The Bo ard of Directors, the 
entity to which this role has been delegated, or PROCOMER may seek the opinion 
of other government entities or bodies where it considers that this will assist with 
the assessment of the project. After examining the application, within  five working 
days of receipt of the complete application, the Board of Directors or the relevant 
entity of PROCOMER shall submit the final recommendation to COMEX so that the 
Executive can make a decision on the matter within not more than four working 
days from receipt of PROCOMER's recommendation.5 
(d) At its discretion, PROCOMER is empowered to seek expert opinions from various 
state institutions to assist its examination of the enterprise's application.6 
If the recommendation is approved, the Executive g rants the applicant enterprise Regime status 
and issues an Executive Resolution, which must contain the information defined in Article 14 of the 
Regulations implementing the Duty -Free Zone Regime Law.7 The Executive Resolution granting 
Regime status, the amendments thereto, and the Resolution relinquishing the Regime shall be 
published in full in the Official Journal.  
 
 
3 Article 10 of the Regulations implementing the Duty -Free Zone Regime Law.  
4 Article 13 of the Regulations implementing the Duty -Free Zone Regime Law.  
5 Article 13 of the Regulations implementing the Duty -Free Zone Regime Law.  
6 Article 26 of the Duty -Free Zone Regime Law.  
7 Article 27 of the Duty -Free Zone Regime Law.  G/SCM/N/401/CRI  
 
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  7. Estimated amount of the subsidy  
 
As this subsidy involves exemptions from a number of different taxes and consular fees, which vary 
according to the level of compliance with the specified requirements, the comprehensive information 
required to estimate the amount of the subsidy is not ava ilable. In addition, it is not realistic to 
assume that, in the absence of the subsidy, the same enterprises , with  the same levels of activity , 
would be operating under the Regime . As such , it is not possible to empirically calculate the collection 
amount expected in the absence of the Regime and therefore it is not feasible to estimate a reliable 
amount for the subsidy.  
 
8. Duration of the subsidy  
 
The benefits granted to enterprises by the La w take effect as of the date on which the Resolution 
granting Regime status is forwarded to the applicant, without prejudice to the second paragraph of 
Article 20(g) of the Duty -Free Zone Regime Law and the provisions in subparagraph  (d) of 
Article  21 ter of the Law. Notwithstanding the foregoing, performance of the activities under the 
Regime and actual enjoyment of the benefits may not commence until such time as the beneficiary 
enterprise has signed an operating contract with PROCOMER, in the format esta blished for this 
purpose.  
 
In order to commence production operations under the Regime, the enterprise must have been 
authorized by the Directorate -General of Customs to act as a Customs Service Auxiliary, in 
accordance with the General Customs Law and it s implementing Regulations.  
The Executive Resolution granting Regime status, the amendments thereto, and the Resolution 
relinquishing the Regime shall be published in full in the Official Journal.  
 
The main incentives of the Duty -Free Zone Regime are sub ject to a specific expiry, depending on 
the case and as defined in the Law. Moreover, where there is non -compliance with the conditions 
laid down, the Regime may be revoked by COMEX.  
 
(a) Of the incentives described in section 5 of this notification, the follo wing are subject 
to a specific expiry date : exemption from payment of taxes on capital and net assets, 
land tax and tax on the conveyance of real estate for a period of 10 years from the 
commencement of operations.8 
(b) Exemption from all taxes on profits, and any other taxes for which the tax base is 
determined according to gross or net earnings, dividends paid to shareholders, or 
revenue or sales, according to the following distinctions:9 
• For enterprises based ithin  the GAM, the exemption shall be 100% for a period of 
up to eight years, and 50% for the following four years.  
• For enterprises based outside the GAM, the exemption shall be 100% for a period 
of up to 12 years, and 50% for the following six years.  
(c) Exemption  from all municipal tax and business taxes for a period of 10 years.10 
(d) Enterprises based in duty -free zones located in "relatively less -developed " areas are 
entitled to a credit of 10% of the amount paid as wages and salaries during the 
previous year, whic h shall be granted for five years and shall decrease by two 
percentage points per annum, through to its termination in the last year.11 
 
8 See section 5(e) of this notification.  
9 See section 5(h) of this notification.  
10 See section 5(i) of this notification.  
11 See section 5(l) of this notification. In practice, this incentive has not been requested by any 
beneficiaries and therefore has not  been applied for a number of years.  G/SCM/N/401/CRI  
 
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  (e) The additional 75% exemption from income tax for export processing enterprises 
operating as beneficiaries of the Duty -Free Zone Regime , which, on completion of 
four years of operation under that Regime, reinvest in  the country shall be:12 
• For one additional year if the reinvestment is in excess of 25% of the original 
investment.  
• For two additional years if the reinvestment is in excess of 50% of the original 
investment.  
• For three additional years if the reinvestment is in excess of 75% of the original 
investment.  
• For four additional years if the reinvestment is in excess of 100% of the original 
investment.  
(f) Exemption from the Social Development and Family Allowances Fund (FODESAF) 
payment for new duty -free zone enterprises based  outside the GAM , as follows:  
 
• For the first five years of operation, exemption of 5%.  
• From year six of operation and until year seven, exemption of 1%.  
• From year eight of operation, exemption of 2%.  
• From year nine of operation, these enterprises are subject to the general payment 
established for private employers.  
The first year for granting this benefit shall be established in the respective Resolution 
granting Duty-Free Zone Regime  status . 
 
(g) Single contribution to the Working Capital Fund of the Banco Popular y de Desarrollo 
Comunal of 0.25% per month on the remuneration ref erred to in Article 5(a) of 
Organic Law of the Banco Popular y de Desarrollo Comunal No. 4351, for new 
enterprises covered by the Duty-Free Zone Regime that are located and operate 
outside the GAM , for the first 10 years of operation. From year 11 of operation, these 
enterprises shall be subject to the common regime. The first year for granting this 
benefit shall be established in the respective Resolution granting Regime  status . 
 
(h) Exemption from the contribution to the Joint Social Welfare Institute (IMAS) for new 
companies covered by the Duty-Free Zone Regime that are located and operate 
outside the GAM , as follows:  
• For the first five years of operation, the enterprises cited are exempt from this 
contribution.  
• From year six and up to year 10 of operation, the enterprise must pay 0.25% of its 
remuneration to IMAS.  
• From year 11 of operation, such enterprises shall be subje ct to the general 
contribution applicable to private sector employers.  
(i) Contribution to the National Training Institute (INA) of 1% of the total monthly payroll  
for new enterprises covered by the Duty-Free Zone Regime that are located and 
operate outside th e GAM , during  the first 10 years of operation. For this purpose, the 
first year shall be established in the respective Resolution granting Regime status . 
From year 11 of operation, such enterprises shall be subject to the general percentage 
applicable to private sector employers, save exceptions established by this law.  
 
 
12 See section 5(m) of this notification.  G/SCM/N/401/CRI  
 
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  9. Trade effects of the subsidy  
 
The Duty -Free Zone Regime has played a crucial role in the diversification of the country's 
exportable supply. Over the years, it has seen a shift from high volume and less complex activities 
to activities that are more sophisticated and value -adding. This is the result of the increased 
professionalization of human talent, greater openness to trade and solid conditions for setting up 
enterprise s. The  exports of goods under the Duty -Free Zone Regime over the last three years are 
set out in the table below:  
Table 1. Costa Rica: Exports of goods under the Duty -Free Zone Regime (2020 -2022)  
 2020  2021  2022  
Value of exports (USD million)  6,371.6  8,254.8  9,345.4  
Growth (%)**  6.7 29.6 13.2 
Source:  PROCOMER.  
* Preliminary figures subject to revision.  
** Figures prepared by the author, based on data from PROCOMER.  
2  THE INWARD PROCESSING REGIME  
1. Description of the subsidy  
 
The Inward Processing Regime is the customs regime allowing the entry of goods into national 
customs territory with the suspension of all types of taxes, subject to lodgement of a guarantee 
deposit. The goods must be processed, repaired, reconstructed, installed, ass embled and 
incorporated into sub -assemblies, machinery, transport equipment or appliances with a higher 
degree of complexity, under the conditions laid down in the Regulations and in accordance with the 
provisions stipulated for this purpose by the compete nt administrative authority.  
 
2. Period of notification  
 
This notification provides a description of the Inward Processing Regime for the calendar years 
2021 and 2022.  
 
3. Policy objective  
 
The Inward Processing Regime is designed to promote production, employment, and foreign direct 
and domestic investment. The conjunction of all these aspects helps to achieve national 
development objectives such as raising the standard of living of the population, increasing income 
levels, reducing unemploym ent and increasing the country's productivity and ability to compete 
internationally.  
 
4. Background and authority  
 
• General Customs Law No. 7557 of 20 October 1995, Chapter VI (Processing Regimes)13, 
and the amendments thereto;  
• Regulations implementing the General Customs Law - Executive Decree No.  25270 -H of 
28 June 199614, Chapter XIII (Inward Processing Regime) , and the amendments thereto;  
• Regulations on the Inward Processing Regime - Executive Decree No. 40198 of 
13 December  2016.15 
 
13 The parts referred to are attached as Annexes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archiv es of the 
Rules  Division.   
14 The parts referred to are attached as Annexes to Costa Rica's notification in document 
G/SCM/N/71/CRI of 5 March 2002. The full text is available for consultation in the archives of the 
Rules  Division.  
15 The full text is attach ed as an Annex to Costa Rica's notification in documents G/SCM/N/299/CRI and 
G/SCM/N/315/CRI of 23 October 2017.  G/SCM/N/401/CRI  
 
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  5. Form of the subsidy, beneficiaries and mechanism  
 
To be eligible for the Inward Processing Regime, the enterprise must choose one of the modalities 
available:  
 
• 100% direct or indirect re -export modality: this modality is available to Regime 
beneficiaries that directly or indirectly re -export the whole of their production.  
• Direct or indirect re -export and domestic sale modality: this modality is available to 
Regim e beneficiaries that directly or indirectly re -export and sell their production on the 
domestic market, under the terms and conditions previously authorized by COMEX.  
Enterprises operating under the "domestic sale" option are required to pay the full tax p ayable for 
the definitive importation of the goods. Similarly, at the time of inward clearance of machinery and 
equipment under the Regime, they are required to pay the proportion of tax corresponding to the 
percentage of sales on the domestic market in re lation to the total sales of the enterprise.  
 
The obligations for Regime beneficiaries include the following:  
 
• To submit reports on all their operations to PROCOMER's Special Regimes Administration . 
• To keep a log of operations carried out under the Regime . 
• Prior to commencing operations, to apply to the Directorate -General of Customs for 
permission to operate as a Customs Service Auxiliary . 
• To keep goods entering under the Regime in authorized premises or plants . 
• To keep a separate stock control system and accounting records for operations carried out 
under the Regime . 
• To comply with customs legislation.  
6. Estimated amount of the subsidy  
 
The information required to estimate the amount of the subsidy granted under this Regime is not 
available.  
 
7. Duration of the subsidy  
 
Regime benefits apply as from the date of issue of the authorization to commence activities under 
the Inward Processing Regime. The benefits granted by this Regime continue for an indefinite term, 
except in the event of  revocation of authorization to operate under the Regime by COMEX, or 
relinquishment of Regime status by the beneficiary enterprise.  
 
8. Trade effects of the subsidy  
 
The value of the exports of goods under the Inward Processing Regime is set forth in the ta ble 
below:  
Table 2. Costa Rica: Exports of goods under the Inward Processing Regime (2020 -2022)  
 
2020  2021  2022  
Value of exports (USD million)  138.9  242.3  226.6  
Growth (%)**  -10.1 74.5 -6.5 
Source:  PROCOMER.  
* Preliminary figures subject to revision.  
** Figures prepared by the author, based on data from PROCOMER.  G/SCM/N/401/CRI  
 
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  3  FISHING  
This section sets out the production, export and import data from the domestic fisheries sector over 
the past years. It also provides details on the specific subsidy programm es granted to this sector 
under the Agreement on Subsidies and Countervailing Measures.  
Table 3. Costa Rica: Production of the main trading groups in the domestic fisheries 
sector (tonnes), 2020 -2022  
Category  Production (tonnes)  
2020  2021  2022*  
 Gutted  4,531  7,093 7,911 
 Pelagics  17,339  18,067 20,442 
 Sharks  3,334  4,109 3,657 
 Crustaceans  138 165 13 
 Molluscs  18 22 2 
 Other   212 3 3 
Total  25,633  29,460 32,027 
Source:  INCOPESCA.  
* Preliminary data.  
Table 4. Costa Rica: International trade statistics on the fisheries subsector, 2020 -2022  
Fisheries Sector  2020  2021  2022  
USD million  
Exports  61.4 82.8 89.8 
Imports  75.8 78.4 99.6 
Tonnes  
Exports  8,749.7  11,217.1  11,491.6  
Imports  26,557.6  27,076.0  28,736.2  
Source:  Based on data from the Central Bank of Costa Rica (BCCR) and PROCOMER.  
Note:  These figures cover Chapter 3 of the Harmonized System and vary with respect to the previous 
notification because of changes in the statistical information.  
A. FUEL SUBSIDY PROGR AMME (DIFFERENTIATED PRICING)  
1. Description of the subsidy  
 
The non -sport national fishing fleet shall purchase fuel (petrol and diesel) from the Costa Rican 
Petroleum Refinery (RECOPE) at a price that is competitive in relation to the international price and 
takes into account only the following elements:  
i. The cost of the product (refined product: amount of the purchasing invoice. Unrefined 
product: cost of refinement in Costa Rica).  
ii. Freight costs incurred until reaching the port of dest ination in Costa Rica.  
iii. Insurance for the fuel.  
iv. The cost of transporting the final product within the national territory to the point of 
distribution.  G/SCM/N/401/CRI  
 
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  v. The cost of storage and pumping for the establishment where the fuel is sold. These 
amounts shall be set b ased on the previous month's average import cost, or the most 
recent similar information available.  
The Costa Rican Fisheries and Aquaculture  Institute  (INCOPESCA) is the authority responsible for 
the administration and control of the efficient use of fuel intended for non -sport fishing.  
 
2. Period of notification  
 
This notification provides a description of the fuel subsidy programme (differentiated pricing) for 
2021 and 2022.  
 
3. Policy objective  
 
Pursuant to Law No. 8436, fishing activity is declared to be of public and social interest, and it is 
also in the national interest to promote and develop this activity a nd the related industry. In this 
respect, this subsidy seeks to strengthen this sector, particularly its capacity to create employment 
opportunities in coastal communities with few alternatives for the generation of income and, thus, 
with high levels of ec onomic and social vulnerability.  
 
4. Background and authority  
 
• Article 45 of Law No. 7384 establishing the Costa Rican Fisheries and Aquaculture Institute 
(INCOPESCA), published in Official Journal No. 62 of 29 March 1994.  
• Article 123 of Law No. 8436 on the Law on Fishing and Aquaculture, published in 
Official  Journal No.  78 of 25 April 2005.  
• Law No. 9134 on the authentic interpretation of Article 45 of Law No.  7384 and Article  123 
of Law No.  8436, published in Official Journal No.  113 of 13 June 2013.  
• Amendment to the Regulations governing and controlling the efficient use of fuel at a 
competitive price, intended for the non -sport national commercial fishing fleet, within or 
outside jurisdictional waters. INCOPESCA Executive Board Agreement AJDIP/ 330-2016, 
published in Official Journal No.  40 of 24 February 2017.  
5. Form of the subsidy, beneficiaries and mechanism  
 
Legal or natural persons possessing commercial fishing licences may purchase fuel at a 
differentiated price. The Regulations governing and  controlling the efficient use of fuel at a 
competitive price stipulate that each beneficiary may apply to purchase fuel at a competitive price, 
either personally or through their representatives with individual or collective power of attorney 
when the app lication is made through organizations.  
 
6. Estimated amount of the subsidy  
 
The estimated amount of the annual subsidy granted to fishers by means of a competitive price is 
set out below:  
Table 5. Costa Rica: Subsidy provided to fishers by means of a compet itive price, 
2021 -2022 
Year USD million  
2021 2.03 
2022 1.52 
Source:  RECOPE.  
7. Duration of the subsidy  
 
The benefits take effect as soon as the subsidy is established and continue for an indefinite term.  
 G/SCM/N/401/CRI  
 
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  B. EXEMPTION FROM THE SINGLE TAX ON FUEL  
1. Description of the subsidy  
 
The non -sport national fishing fleet is exempt from payment of the single tax on fuel, pursuant to 
Law No.  8114.  
 
2. Period of notification  
 
This notification provides a description of the exemption from the single tax on fuel for 2021 and 
2022.  
 
3. Policy objective  
 
Pursuant to Law No. 8436, fishing activity is declared to be of public and social interest, and it is 
also in the national interest  to promote and develop this activity and the related industry. In this 
respect, this subsidy seeks to strengthen this sector, particularly its capacity to create employment 
opportunities in coastal communities with few alternatives for the generation of i ncome and, thus, 
with high levels of economic and social vulnerability.  
 
4. Background and authority  
 
• Article 1 of Law No. 8114 on tax simplification and efficiency, published in Official  Journal 
No. 131 of 9 July 2001.  
5. Form of the subsidy, beneficiaries and  mechanism  
 
The benefit is granted to the non -sport national fishing fleet. When purchasing petrol or diesel, 
fishers must present the purchase authorization issued by INCOPESCA so that the exemption from 
the single tax on fuel may be applied.  
 
6. Estimated a mount of the subsidy  
 
The estimated amount of the annual subsidy provided by means of the exemption from the single 
tax on fuel for the fishing fleet is set forth below:  
 
Table 6. Costa Rica: Subsidy provided to fishers by means of the exemption from the 
single tax on fuel, 2021 -2022 
Year USD million  
2021 8.01 
2022 8.49 
Source:  RECOPE.  
7. Duration of the subsidy  
 
The benefits take effect as soon as the subsidy is established and continue for an indefinite term.  
 
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