WORLD TRADE  
ORGANIZATION  G/SCM/N/155/CRI 
G/SCM/N/160/CRI 
3 July 2007 
 (07-2840) 
Committee on Subsidies and 
Countervailing Measures Original:   Spanish 
 
  
SUBSIDIES 
 
New and Full Notification Pursua nt to Article XVI:1 of the
 
GATT 1994 and Article 25 of the SCM Agreement  
 
Extension Under SCM Article 27.4 of the Transition Period for the  
Elimination of Export Subsidies Pursuant to the Procedures  
in Document G/SCM/39  
 
COSTA RICA 
 
 
 The following communication, dated 29 June 2007, is being circulated at the request of the 
delegation of Costa Rica. 
 
_______________ 
 
 G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 2 
 
 
  CONTENTS 
 
Page
 
 
Notification ................................................................................................................... ....................... 1 
 
  
ANNEXES  
 
Executive Decree No. 33204 of 6 June 2006....................... ............................................................. 11  
Executive Decree No. 33283 of 7 June 2006....................... ............................................................. 16  
Executive Decree No. 33291 of 20  June 2006.................................................................................. 20 
Executive Decree No. 33360 of 20 September 2006........... ............................................................. 22 
Executive Decree No. 33483 of 2 November 2006 .......................................................................... 25  G/SCM/N/155/CRI 
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  A. STANDSTILL REQUIREMENTS OF THE PROCEDURES FOR EXTENSIONS UNDER ARTICLE 27.4 
 The programmes contained in this notification, which have been granted extensions under 
Article 27.4 of the Agreement on Subsidies and C ountervailing Measures, have not been modified 
with respect to the requirements of document  G/SCM/39. 
 
B. THE DUTY-FREE ZONE REGIME  
1. Description of the subsidy 
 The Duty-Free Zone Regime is the set of in centives and benefits offered by the State to 
enterprises making new investments in Costa Rica, subject to compliance with the obligations set 
down in Law No. 7210 and amendments thereto, and its implementing regulations.  One of the 
qualification criteria is the requirement that at least 75 per cent of the enterprise's production must be 
exported.  The Regulations lay down the definition of "new investments in the country".  The 
establishment location of a group of enterprises opera ting as beneficiaries of this Regime is called a 
"Duty-Free Zone", which is required to be a defi ned area, without a resident population, which is 
authorised by the Executive to operate in this capacity. 
 2. Period of the notification 
 This notification provides a description of the Duty-Free Zone Regime corresponding to 
calendar year 2006. 
 
3. Policy objective 
 The fundamental objective of the Law is to promote the socio-economic development of 
Costa Rica by attracting foreign investment, domestic investment and the promotion of exports.  The 
duty-free zone regime is an important economic instrument for raising the standard of living of the 
population of Costa Rica, particularly by creating sources of employment and supporting human 
development, with a special focus on less-developed areas of the country.  This type of regime is 
conducive to the establishment of enterprises pe rforming a full range of operations and production 
processes which contribute to the generation of w ealth and technological know-how, and increase the 
country's ability to be competitive internationally. 
 
4. Background and authority 
Duty-Free Zone Law, Law No. 7210 of 23 November 1990 (full text attached as an Annex to 
Costa Rica's notification G/SCM/N/71/CRI of 5 March 2002) and amendments thereto.
1  
 
Regulations Implementing the Duty-Free Zone Law – Executive Decree 
No. 29606-H-COMEX of 18 June 2001 (full text attached as an Annex to Costa Rica's notification 
G/SCM/N/71/CRI of 5 March 2002) and amendments thereto.2 
                                                      
 1 The amendments to Law 7210 of 23 November 1990 are contained in Law 7467 of 
20 December 1994, Law 7535 of 1 August 1995, Law No. 7638 of 30 October 1996, Law No. 4924 of 17 September 1997 and Law No. 7830 of 22 September 1998 (full texts of this legislation attached as Annexes 
to Costa Rica's notification G/SCM/N/71/CRI of 5 March 2002).  Law No. 8262 of 2 May 2002 amended 
Article 23 of Law 7210;  the full text of this Article is attached as an Annex to Costa Rica's notification G/SCM/N/95/CRI of 8 July 2003. G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 4 
 
 
   General Customs Law, Law No. 7557 of 20 October 1995, Section I, Chapter V (Duty-Free 
Zone Regime
3) and amendments thereto.4 
 
 Regulations Implementing the General Customs Law, Chapter X (Duty-Free Zone Regime), 
Executive Decree No. 25270-H of 28 June 19965 and amendments thereto.6 
 5. Form of subsidy 
 The subsidy is essentially an exemption from paym ent of all taxes, consular fees and duties.  
The subsidy is provided in the manner set out below.   
 The incentives granted by this regime are: 
 
 (a) Exemption from all tax and consular fees  on imports of raw materials, manufactured 
and semi-manufactured products, components and parts, packing and packaging materials, and other goods and merchandi se required for the operation of the 
enterprise; 
 
 (b) exemption from all tax and consular f ees on imports of machinery, equipment, 
accessories and spare parts, and on auto motive vehicles required for the operation, 
production, administration and tran sport activities of the enterprise; 
 
                                                     
 
2 The amendments to Executive Decree No. 29606-H-COMEX of 18 June 2001 are contained in:  
Executive Decree No. 29962 of 22 September 2001, Executive Decree No. 30124 of 25 January 2002, Executive Decree No. 30407 of 18 April 2002, and Executive Decree No. 30849 of 23 October 2002, (all of which are attached as Annexes to Costa Rica's notification G/SCM/N/95/CRI of 8 July 2003), Executive 
Decree No. 31715-H-COMEX-MEIC of 2 March 2004 (attached as an Annex to Costa Rica's notification 
G/SCM/N/114/CRI of 2 July 2004), Executive Decree No. 32232 of 16 December 2004 (attached as an Annex to Costa Rica's notification G/SCM/N/123/CRI), Executive Decree No. 32804 of 30 November 2005 (attached 
as an Annex to Costa Rica's notification G/SCM/N/146/CRI), Executive Decree No. 33204 of 6 June 2006, 
Executive Decree No. 33283 of 7 June 2006, Executive Decree No. 33291 of 20 June 2006, Executive Decree No. 33360 of 20 September 2006 and Executive Decree No. 33483 of 2 November 2006 (attached as an Annex 
to this notification). 
3 Parts referred to attached as an Annex to Costa Rica's notification G/SCM/N/71/CRI of 
5 March 2002.  The full text is available for examination in the archives of the Legislative Division.  
4 The amendments to the General Customs Law, Law No. 7557 of 20 October 1995, are contained in 
Law 7900 of 3 August 1999 (available for examination in the archives of the Rules Division), Law No. 8373 of 
4 August 2003 and Law No.8419 of 28 June 2004 (this last reform neither amended nor changed any benefits under the regimes). 
 
5 Parts referred to attached as an Annex to Costa Rica's notification G/SCM/N/71/CRI of 
5 March 2002.  The full text is available for examination in the archives of the Rules Division.    
6 The amendments to the Regulations Implementing the General Customs Law, Chapter X (Duty-Free 
Zone Regime), Executive Decree 25270-H of 28 June 19 96, are contained in Executive Decree No. 25295 of 
17 June 1996 (available for examination in the archives of the Rules Division), Executive Decree No. 26285 of 18 August 1997 (full text attached as an Annex to Costa Rica's notification G/SCM/N/71/CRI of 5 March 2002), Executive Decree No. 26961 of 30 March 1998 (available for examination in the archives of the Rules 
Division), Decree No. 27717 of 23 February 1999 (available for examination in the archives of the Rules 
Division), Executive Decree No. 28242 of 30 September 1999 (available for examination in the archives of the Rules Division), Executive Decree No. 28976 of 27 September 2000 (available for examination in the archives 
of the Rules Division).  Executive Decree No.31667-H of 5 March 2004 (available for examination in the 
archives of the Rules Division) and Executive Decree No. 32089 of 23 September 2004 (this last reform neither amended nor changed any benefits under the regimes).    G/SCM/N/155/CRI 
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   (c) exemption from all tax and consular fe es on imports of fuel, oil and lubricants 
required for the operation of such enterprises; 
 
 (d) exemption from all tax relating to th e export or re-export of products.  This 
exemption is granted for the re-export from the Zones of production machinery and 
equipment which entered pursuant to the law; 
 
 (e) exemption from payment of tax on capit al and net assets, and payment of land tax; 
  (f) exemption from sales and consumption tax on purchases of goods and services;  
 (g) exemption from all taxes 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; 
 
 (i) exemption from any municipal tax or business tax; 
 
 (j) exemption from any taxes on imports or exports of commercial or industrial samples;   (k) to enhance their business operations, enterprises covered by the Duty-Free Zone 
Regime may freely execute all kinds of deed s and contracts in foreign currency with 
respect to international transactions or tran sactions with other enterprises established 
under the Duty-Free Zone Regime; 
 
 (l) enterprises based in relati vely less-developed areas are en titled to a credit of 10 per 
cent of the amount paid as wages and sala ries during the previous year, with that 
percentage decreasing by two percentage points per annum, through to its termination 
in the fifth year; 
 
 (m) 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 may be granted an additional exemption from payment of income tax, 
for a percentage corresponding to the ratio  of the reinvestment to the original 
investment. 
 
 The above exemptions remain subject to fulfilme nt of certain specific requirements laid down 
by Laws and Regulations, and international agr eements signed and approved by the country. 
 6. Beneficiaries and mechanism 
 The following types of enterprise qualify for the Duty-Free Zone Regime: 
 
 (a) Export processing industries which produc e, process or assemble for export or re-
export; 
 
 (b) export trading enterprise s, with no production activity, which merely handle, re-pack 
or re-distribute non-traditional merchandise and products for export or re-export; 
 
 (c) service industries and enterprises which export services to natural or legal persons 
domiciled abroad, or provide the services to companies which are beneficiaries of the G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 6 
 
 
  Duty-Free Zone Regime, in the latter case provided that the services are directly 
related to the production process of the companies which are beneficiaries of the 
Duty-Free Zone Regime; 
 
 (d) enterprises managing indus trial parks where enterprises are to be based under the 
Duty-Free Zone Regime, provided that th e parks meet certai n minimum conditions 
regarding infrastructure and availability of se rvices, in according with the Regulations 
implementing the Law; 
  (e) enterprises or entities engaged in scientific  research to raise the technological level of 
the country's industrial or agribusiness activity and foreign trade; 
 
 (f) enterprises operating shipyards or dry or floating docks for the construction, repair or 
maintenance of ships. 
  Export trading enterprises do not qualify for the exemptions under indents (g) and (h) of 
section A.5 of this notification.  In this context it should be noted that the great majority of enterprises 
operating under the Duty-Free Zone Regime are export processing industries rather than export 
trading enterprises. 
  Banking, financial and insurance entities base d in duty-free zones do not qualify for the 
benefits of this Regime.  Neither do natural or  legal persons engaged in providing professional 
services qualify for the Regime. 
 
 There are several stages in the granting of Regime status: 
 
 (a) The natural or legal person  wishing to join the Duty-Free Zone Regime is required to 
submit the relevant applic ation to the Corporation
7 (rights and obligations currently 
vested in the Foreign Trade Promotio n Agency (PROCOMER), pursuant to 
Article 13(a) of Law No. 7638 of 30 Octobe r 1996), to be duly authenticated by a 
notary public, and to be accompanied by detailed information on the pollution caused 
by the process and its waste and the documents requested by the Board of Directors 
of the Corporation. Generally speaking, all applications must comply with the 
relevant instructions issued by the Corporation. 
  (b) The Corporation examines the applica tion and information in cluded, subject to 
provision of all the required details, an d forwards an opinion to the Board of 
Directors, which is then required to decide on the matter by no later than at the 
ordinary meeting following receipt of the opinion, or at an extraordinary meeting if so 
agreed by four of its members. 
 
 (c) At its discretion, the Corporation may seek specialist opinions from various State 
institutions to assist its examinatio n of the enterprise's application. 
 
 (d) If the recommendation is approved, it is  then ratified by the Executive, by a 
resolution citing the details specified in the Regulations implementing the Law. 
 
                                                     
 
 7 "Corporation" means "Corporación de la Zona Franca de Exportaciones S.A." (Export Duty-Free 
Zones Corporation, public limited company), pursuant to the General Customs Law, Law No. 7557 of 20 October 1995.  G/SCM/N/155/CRI 
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  7. Estimated amount of the subsidy 
 Since 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 available. 
 
8. Duration of the subsidy 
 The Regime benefits apply as from the point in time when Duty-Free Regime status is granted 
to the enterprises applying for that status.  Except in the case of cancellation of Regime status by the 
Ministry of Foreign Trade, relinquishment by the beneficiary enterprise and specific exceptions for 
any of the incentives as set out below, Duty-Fre e Zone status is held for an indefinite term. 
 
 Of the incentives described in section 5 of th is notification, the following are subject to a 
specific expiry date: 
  - Exemption from taxes on capital and net assets, and payment of land tax, for a period 
of ten years.
8 
 
 - exemption from all taxes on profits and any other tax for which the tax base is 
determined according to gross or net earnings, dividends paid to shareholders or 
revenue or sales9, according to the following distinctions: 
 
 (a) For enterprises based in "relatively more developed areas", the exemption is 
100 per cent for a period of up to eight years, and 50 per cent for the 
following four years. 
  (b) For enterprises based in "relatively less developed areas", the exemption is 
100 per cent for a period of up to 12 years, and 50 per cent for the following 
six years. 
 
 (c) For export processing enterprises which, after operating for four years under 
the Regime, make investments in Costa Rica, there is a possibility of a further exemption of 75 per cent for up to four years, depending on the reinvestment amount. 
 
 - Exemption from all municipal tax and business tax for a period of 10 years.
10 
 
9. Trade effects of the subsidy11 
 At the present time there are 133 enterprises receiving the benefits of Duty-Free Zone status.  
Between them, those firms generated 53 per cent of  the total exports of Costa Rica in 2006, as 
compared with 1991, when 81 enterprises covered by the regime accounted for only 9.3 per cent of 
                                                      
 8 See section 5(e) of this notification. 
 9 See section 5(h) of this notification. 
10 See section 5(i) and (m) of this notification. 
11 Information supplied by the Foreign Trade Promotion Agency (PROCOMER).  The data for 2006 
are preliminary figures:  the last few months may undergo adjustments (some formalities being provisional) that are not entered in the data base until the final documentation has been processed. G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 8 
 
 
  total exports.  In 2006, roughly 1,076 different products were exported to 100 countries under the 
Duty-Free Zone regime. 
 
 It should be noted that in 2006, the sales ab road of these enterprises amounted to almost 
US$4,310.3 million, 17 per cent more than the previous year.  On average, some 40,000 workers are 
directly employed by the Duty-Free Zone Regime. 
 
 Along with this favourable socio-economic impact, the establishment of high-technology 
enterprises has been conducive to technology transfer and the development of a significant 
knowledge-based industry in the domestic market, plus a specialized and highly competitive labour force. 
 
Costa Rica:  Total Exports and Duty-Free Zone Exports 
In Million US$ 
 
 2004 2005 2006 
Duty-Free Zone 3,241.7 3,698.2 4,310.3 
Total exports 6,281.3 7,004.8 8,198.2 
 Source :  PROMCOMER 
 
C. THE INWARD PROCESSING REGIME  
1. Description of the subsidy 
 The inward processing regime is the Customs regime allowing the entry of merchandise into 
the national Customs territory with suspension of all kinds of taxes, subject to lodgement of a 
guarantee deposit.  The goods must be re-exported,  within time-limits laid down in the relevant 
regulations, after undergoing processing, repair, reco nstruction, installation, assembly, or after being 
incorporated in sub-assemblies, mach inery, transport equipment in gene ral or appliances with a higher 
degree of technological or functional complexity, or after being used for other similar purposes, in 
situations as laid down in regulations or provisions stipulated for this purpose by the competent 
administrative authority. 
  Applications for a transition period for the Inward Processing Regime refer solely to 
exemptions from import duties and indirect ta xes meeting one of the conditions laid down in 
paragraphs (g), (h) or (i) of Annex I to the SCM Agreement. 
 
2. Period of notification 
 This notification provides a description of the Inward Processing Regime corresponding to 
calendar year 2006. 
 3. Policy objective 
 The inward processing regime is designed to promote production, employment, and foreign 
and domestic investment, which inevitably cont ributes towards increasing exports and domestic 
consumption.  The conjunction of all these aspects helps to achieve national development objectives 
such as raising the standard of living of th e population, increasing income levels, reducing 
unemployment and increasing the country's productivity and ability to compete internationally. 
  G/SCM/N/155/CRI 
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  4. Background and authority 
 General Customs Law, Law No. 7557 of  20 October 1995, Chapter VI (Processing 
Regimes)12 and amendments thereto.13 
 
 Regulations Implementing the General Cust oms Law, Chapter XIII (Inward Processing 
Regime), Executive Decree No. 25270-H of 28 June 199614, and amendments thereto.15 
 
 Regulations on the Inward Processing and Duty Refund Regimes, Executive Decree 
No. 26285-H-COMEX of 19 August 1997 (full text a ttached as an Annex to Costa Rica's notification 
G/SCM/N/71/CRI of 5 March 2002), and amendments thereto.16 
 5. Form of subsidy 
 The inward processing subsidy allows the en try of merchandise into the national Customs 
territory with suspension of all kinds of taxes, subj ect to lodgement of a guarantee deposit.  The goods 
must be re-exported, within time-limits laid down in the relevant regulations, after undergoing 
processing, repair, reconstruction, installation, assembly, or after being incorporated in sub-
assemblies, machinery, transport equipment in ge neral or appliances with a higher degree of 
technological or functional complex ity, or after being used for other similar purposes, in situations as 
laid down in regulations or provisions stipulated for this purpose by the competent administrative 
authority.  
6. Beneficiaries and mechanism 
 To qualify for the Regime, the enterprise must choose one of the options available: 
 
 (a) 100 per cent re-export option: enterprises choosing this option may not sell their 
products on the domestic market; 
 
 (b) re-export and domestic sale option: under this option enterprises may sell the goods 
on the domestic market or simply re-export them. 
 
 Enterprises operating under the "domestic sale" option are required to pay the full tax payable 
for the definitive importation of the goods.  Similarly, on the entry of the machinery and equipment under the regime, they are required to pay the prop ortion of tax corresponding to the percentage of 
sales on the domestic market as a rati o of the total sales of the enterprise. 
 
                                                     
 
12 Parts referred to attached as an Annex to Costa Rica's notification G/SCM/N/71/CRI of 
5 March 2002.  The full text is available for examination in the archives of the Rules Division. 
 13 Cf. footnote 4. 
14 Parts referred to attached as an Annex to Costa Rica's notification G/SCM/N/71/CRI of 
5 March 2002.  The full text is available for examination in the archives of the Rules Division.  
15 Cf. footnote 6. 
 16 The amendments to the Regulations Implementing the Inward Processing and Duty Refund Regimes, 
Executive Decree No. 26285-H-COMEX of 19 August 1997, are contained in Executive Decree No. 27329 of 26 August 1998 and Executive Decree No. 29055 of 31 October 2000 (full texts attached as an Annex to Costa 
Rica's notification G/SCM/N/71/CRI of 5 March 2002).  Also, Executive Decree No. 32982-H-COMEX of 
10 March 2006 (the full text of this amendment is attached as an Annex to Costa Rica's notification G/SCM/N/146/CRI). G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 10 
 
 
   The obligations for regime beneficiaries incl ude the following: to submit reports on all their 
operations to the Management of PROCOMER; to keep a log of operations carried out under the 
regime;  prior to commencing operations, to ap ply to the Directorate-General of Customs for 
permission to operate as a Customs Agent;  to keep goods entering under the regime in authorized 
premises or plants; to keep a separate inventory control system and accounting records for operations 
carried out under the regime; to comply w ith Customs legislation requirements, etc. 
 
7. Estimated amount of the subsidy 
 The information required to estimate the amount  of the subsidy granted under this regime is 
not available. 
 8. Duration of the subsidy 
 The Regime benefits apply as from the date  of issue of the authorization to commence 
activities under the Inward Processing Regime.  Except in the ev ent of the revocation of the Regime 
by the Ministry of Foreign Trade, or relinquishm ent by the enterprise co vered by the Regime, the 
benefits granted by this Regime continue for an indefinite term. 
 
9. Trade effects of the subsidy
17 
 At present, there are 64 active enterprises benefiting under the Inward Processing Regime.  In 
2006, this Regime provided employment for about 13,000 people.  In 2006, some 213 different 
products were exported under th is Regime to 47 countries. 
 
 The main destinations for exports under th is Regime include the United States, Central 
America and Panama, which together account for 90.7  per cent (70 per cent, 17.3 per cent and 3.4 per 
cent respectively).   It should be noted that a considerable proportion of the firms operating under this regime are 
located in areas with little urban de velopment, and accordingly represen t a very significant source of 
employment for the area. 
 
Costa Rica:  Total Exports and Inward Processing Exports 
In Million US$ 
 
 2004 2005 2006 
Inward processing 333.3 336.6 431.0 
Total exports 6,281.3 7,004.8 8,198.2 
 Source :  PROMCOMER 
                                                      
17 See footnote 11.  G/SCM/N/155/CRI 
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AMENDMENT TO THE REGULATIONS IMPLEMENTING 
THE DUTY-FREE ZONE REGIME LAW 
No. 33204 
 
THE FIRST VICE PRESIDENT 
ACTING ON BEHALF OF THE PRESIDENT OF THE REPUBLIC, 
THE MINISTER OF FINANCE AND THE 
MINISTER OF FOREIGN TRADE 
 
 
 Pursuant to Article 140(3) and (18) an d Article 146 of the Political Constitution;  
Article 28(2)(b) of the General Pub lic Administration Law of 2 May 1978;  Article 2(g) and (i) and 
Article 8(b) of the Law Establishing the Ministry  of Foreign Trade and the Foreign Trade Promotion 
Agency of Costa Rica, No. 7638 of 30 October 1996, and Articles 1, 4(b) and 24 of the Duty-Free Zone Regime Law, No. 7210 of 23 November 1990 and amendments thereto, and the General 
Customs Law, No. 5757 of 20 October 1996 and amendments and modifications thereto, 
 
Whereas:  
  I. The Duty-Free Zone Regime Law and amendments thereto lay down the required 
conditions for the granting and operation of Duty-Free Zone Regime status and the 
rights and obligations of beneficiaries of that Regime; 
 
 II. one of the fundamental objectives of the State is to ensure the socio-economic 
development of the country by attracting foreign and domestic investment and 
promoting exports and by encouraging links between national enterprises and 
beneficiary enterprises under the Duty-Free Zone Regime; 
 
 III. the Executive is  committed to the promotion, development and growth of Costa Rican 
small and medium-sized enterprises as a me ans of encouraging their competitiveness 
and generating employment in the country; 
 
 IV. the Duty-Free Zone Regime is an appropriate instrument for raising the standard of 
living of Costa Rican citizens,  particularly by generating sources of employment and 
opportunities for advancement; 
 
 V. an essential condition for growth in Costa Rica's foreign trade is the existence of 
factors conducive to the establishment of enterprises carrying out a wide range of 
operations which generate wealth and technological expertise and increase the 
country's internati onal competitiveness; 
 
 VI. Article 24 of the Duty-Free Zone Regime  Law and the amendments thereto stipulate 
that enterprises established under the Duty-Free Zone Regime and classified as export 
processing industries may conclude subcontracts with other enterprises for a portion 
of their production or production process, in strict accordance with the provisions of 
the respective regulations; 
  VII. subcontracting is a tool that may be  used by beneficiary enterprises of the 
aforementioned regime to outsource to local suppliers part of their production or 
production process, thereby generating the establishment of production chains; 
 G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 12 
 
 
   VIII. production chains, as well as increasi ng the volume of sales and indirect exports, 
promote the productive development of local small and medium-sized enterprises 
through the transfer of technology and know-how; 
 
 IX. in some cases, in order to produce the su bcontracted item, the local enterprise will be 
required to use moulds and matrixes that are the property of the beneficiary 
enterprise; 
 
 X. owing to the large-scale investment undertaken by beneficiary enterprises and their 
resulting concerns relating to intellectual pr operty, the moulds, dies and matrixes are 
protected by patent and industrial secrecy ri ghts and may be exploited only by or for 
the company holding the rights, and may not under any circumstances be sold, copied 
or located outside the facili ties of their su bcontractors; 
 
 XI. pursuant to Article 18(c) of the above-mentioned Law No. 7210 of 
23 November 1990 and the amendments thereto, beneficiary enterprises may execute 
all types of deeds required for the establishment and operation of the Duty-Free 
Zones, subject to compliance w ith Costa Rican legislation; 
 
 XII. pursuant to Article 5 of the General Cu stoms Law, the legal pr ovisions governing the 
customs system must be interpreted in th e manner that best ensures the development 
of the Republic's foreign trade, in keeping with the social and economic 
circumstances prevailing at the time of su ch interpretation and with other matters of 
public interest, in the light of the purposes of these provisions; 
 
 XIII. in accordance with the provisions of Article 110 of the General Customs Law, 
No. 7557 of 20 October 1996, and the amendments and modifications thereto, new 
regimes and procedures may, by means of re gulations, be established in order to bring 
foreign trade operations into line with the needs of the users of the service and with 
trade objectives and policies, 
 
Therefore,  
DECREE: 
 
AMENDMENT TO THE REGULATIONS IMPLEMENTING 
THE DUTY-FREE ZONE REGIME LAW 
 
 Article 1.  Article 58(b) and Article 62 of the Regulations Implementing the Duty-Free Zone 
Regime Law, Executive Decree No. 29606 of 18 June 2001, published in the Official Journal, 
La Gaceta , No. 121 of 25 June 2001, shall be amended as follows: 
 
"Article 58. 
 
( … ) 
 
(b) Any natural or legal person establishe d within the national customs territory, 
provided that at least 75 per cent of the total production volume of the enterprise covered by the Regime is produced within the duty-free zone.  In this case, the 
Regime beneficiary enterprise may temporarily clear materials and merchandise 
involved in the subcontracting arrangem ent through customs into the national 
customs territory.  Subcontracting arrange ments by beneficiary enterprises of the  G/SCM/N/155/CRI 
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 Page 13 
 
 
  Regime with SMEs shall be governed by the special provisions established in these 
Regulations." 
 
  "Article 62.  Subcontracting shall not requi re any lodgement of guarantees, except as 
regards the entry of moulds, dies and ma trixes for the subcontracting arrangement 
with SMEs, without prejudice to the privilege of customs lien established in 
Article 71 of the General Customs Law and amendments thereto.  In addition, the 
subcontracting arrangement shall be subject to customs monitoring and supervision, 
as set down in the General Customs Law and its implementing regulations." 
  Article 2.  The  two definitions in Article 3 to be inserted in alphabetical order, an 
Article 65 bis and an Article 65 ter shall be added to the Regulations Implementing the Duty-Free Zone 
Regime Law, Executive Decree No. 29606 of 18 June 2001, published in the Official Journal, 
La Gaceta , No. 121 of 25 June 2001:  
   "Article 3. 
 
 ( ... ) 
 
 Assembly operation:  the act of joining components (parts, sub-assemblies and assemblies) 
which when combined result in a product with characteristics different from its component 
parts." 
 
 ( ... ) 
 
 "SME:  micro, small and medium-sized enterpri se, in accordance with the terms laid down in 
the General Regulations to the Law to Stre ngthen Small and Medium-Sized Enterprises, 
Executive Decree No. 30857-MEIC. 
 
 ( ... )" 
  
 "Article 65 bis. 
  
 Procedures for subcontracting by Regime beneficiary enterprises with SMEs shall be 
established and shall be regulated as follows: 
 
  Beneficiaries which avail themselves of th ese procedures may subcontract to enterprises 
registered as SMEs with the Ministry of the Economy, Industry and Trade the production of 
the pieces or parts of the product required, provided that the beneficiary enterprise undertakes 
at least the assembly of such pieces or parts.   
 
  In such cases, the beneficiary enterprise sh all be able to clear through customs into the 
national customs territory the moulds, dies and matrixes for a maximum period of three years, 
which may be extended once, so that the SME may produce the part or piece covered by the 
subcontracting arrangement, subject to the provisio n of a deed of customs lien, issued by the 
beneficiary enterprise, so as to guarantee the re-entry of the moulds, dies and matrixes to the 
facilities of the beneficiary enterprise and the am ount of the taxes in th e event of failure to 
comply with the customs regulations.  PROCOMER shall authorize the subcontracting arrangement for the period covered by the contra ct, which, for such purposes, shall be signed 
between the SME and the Duty-Free Regime beneficiary enterprise, and of which the 
competent customs office must be informed.  Furthermore, PROCOMER shall keep a record 
of the periods of time authorized for the contracts for each kind of piece or part covered by G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 14 
 
 
  the subcontracting arrangement, so that at the conclusion of the maximum period of the 
contract it may communicate that fact to the competent customs office.  For the purposes of 
this provision, the period of time envisaged by Article 61 of these Regulations shall not apply, 
but instead the period of validity of the contra ct between the SME and the Regime beneficiary 
enterprise shall be up to three years, with the possibility of single extension for a similar 
period.   
 
 The SME subcontractor may not use the moulds, dies and matrixes for other purposes than 
those envisaged in the authorized subcontracting arrangement, so that the goods produced as a result of the service provided by the SME may only be acquired by the subcontracting beneficiary enterprise and may not be expor ted or sold in the national territory. 
 
  Without prejudice to the supervisory powers of the customs authorities, the beneficiary 
enterprise, in its capacity of operating as a cust oms agent, shall at all times ensure the correct 
use of the moulds, matrixes and dies, according to the terms of the subcontracting arrangement.  The beneficiary will be responsible for the tax implications arising from the 
improper use of the moulds, dies and matrixes". 
 
 "Article 65 ter.  In order for the beneficiary enterprise to be authorized to subcontract with the 
SME, under the terms of the previous article, it must meet the following requirements:   1. Sign a contract with the SME, which shall include the following elements: 
 
 (a) Purpose of the subcontracting arrangement; 
 
 (b) identification of the model, series and trademarks of the moulds, dies and 
matrixes; 
 
 (c) an express prohibition forbidding the SME subcontractor from using the 
moulds, dies and matrixes for any other purposes than those envisaged in the 
subcontracting arrangement; 
 
 (d) a specific statement that the pr oduct resulting from the subcontracting 
arrangement will be transferred exclusiv ely to the duty-free zone enterprise 
and that, as a product of that arrangement, the ownership of the moulds, dies and matrixes is not being transferred to the SME. 
 
2. A certificate issued by a competent professional person or body independent of the 
enterprise stating that, as regards the technical characteristics of the goods to be 
produced by the SME, they can only be used by the beneficiary enterprise. 
 
3. A certificate issued by an independent authorized public accountant stating that the 
goods that are the subject of the subcontracting arrangement were acquired in their 
entirety by the beneficiary enterprise.  Th at certificate must be submitted with the 
annual operating report to PROCOMER. 
 
4. A sworn statement by the legal representativ e of the duty-free zone enterprise stating 
that there is no economic link with the SME and that the level of employment will not be affected by the subcontracting arrangement  requested.  The beneficiary enterprise 
must submit the final report mentioned in Article 64 of these Regulations and include 
a statement listing the date, document numb er and amount of the invoices resulting 
from the subcontracting arrang ement, together with a sworn statement in which its  G/SCM/N/155/CRI 
 G/SCM/N/160/CRI 
 Page 15 
 
 
  legal representative states that the use of th e goods is in conformi ty with the purpose 
of the authorized subcontracting arrangement." 
 
 Article 3.  These provisions shall take eff ect as from the date of their publication. 
 
 Done at the Office of the President of the Republic, San José, 6 June 2006. 
 
 G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 16 
 
 
  ADDITIONS AND AMENDMENTS TO SOME ARTICLES OF THE REGULATIONS 
IMPLEMENTING THE DUTY-FREE ZONE REGIME LAW,  
EXECUTIVE DECREE NO. 29606-H-COMEX 
OF 18 JUNE 2001 
No. 33283 
 
THE PRESIDENT OF THE REPUBLIC,  
THE MINISTER OF FINANCE  
AND THE MINISTER OF FOREIGN TRADE 
  
 
 In exercise of the authority and powers conf erred on them by Article 140(3), (18) and (20) 
and Article 46 of the Political Constitution;  and pursu ant to Articles 25, 27(1), 28.2(b) and 103(1) of 
the General Public Administration Law, No. 6227 of 2 May 1978;  Articles 2(g) and (i) and 8(b) of 
the Law Establishing the Ministry of Foreign Tr ade and the Foreign Trade Promotion Agency of 
Costa Rica, No. 7638 of 30 October 1996;  Articles 1, 4(b) and 24 of the Duty-Free Zone Regime 
Law, No. 7210 of 23 November 1990, and Article 45 of the Law Regulating all Current Exemptions, 
Derogations and Exceptions, No. 7293 of 31 March 1992,  
 
Whereas:  
  I. The Duty-Free Zone Regime attracts fo reign investment, promoting the growth of 
exports and having a positive effect on the standard of living of the Costa Rican 
people; 
 
 II. The Duty-Free Zone Regime Law, the amendments thereto and its implementing 
regulations lay down the required conditio ns for the granting and operation of the 
Duty-Free Zone Regime, as well as the rights and obligations of the beneficiaries of 
that Regime; 
 
 III. In conformity with Article 20(b) of  Law No. 7210 of 23 November 1990, the 
enterprises benefiting under this Regime enjoy exemption from all taxes and consular 
fees on imports of automotive vehicles required for the operation, production, 
administration and transport activities of the enterprise; 
  IV. In accordance with the aforesaid Article 20(b) of the Duty-Free Zone Regime Law, 
the vehicles eligible for exemp tions shall be the following: 
 
  "-  Chassis and cabin of vehicles with one to two tonnes load capacity; 
 - trucks or truck chassis; 
 - "pick-ups" with one to two tonnes load capacity; 
 - vehicles with capacity for at least 15 passengers".  
 
 V. In conformity with Article 12 of La w No. 7210 of 23 December 1990 the supervision 
and monitoring of the fiscal regime of Du ty-Free Zones shall be the responsibility of 
the Ministry of Finance, in accordance with the aforesaid law, its implementing 
regulations and other fiscal legislation. 
 
 VI. In accordance with Article 8(b) of Law No. 7638 of 30 October 1996, entitled the 
Law Establishing the Ministry of Foreign Trade and the Foreign Trade Promotion 
Agency of Costa Rica, it is the responsibility of the above-mentioned Promotion  G/SCM/N/155/CRI 
 G/SCM/N/160/CRI 
 Page 17 
 
 
  Agency (PROCOMER), " to provide technical and financial  support to the Ministry of 
Trade for the administration of special export regimes ...". 
 
 VII. In accordance with Article 19(g)  of Law No. 7210 of 23 November 1990, 
beneficiaries of the Duty-Free Zone Regime  must comply with any other obligations 
and conditions imposed on beneficiaries in Executive Decisions granting Duty-Free 
Zone Regime status, the regulations impl ementing the Duty-Free Zone Regime law 
and the operating contracts signed with the Foreign Trade Promotion Agency of 
Costa Rica. 
  VIII. Article 45 of Law No. 7293 of 31  March 1992, "Law Re gulating all Current 
Exemptions, Derogations and Exceptions",  stipulates, in this connection, the 
following: 
 
  " Beneficiaries that, in any way, infringe the regulations of the respective regime of 
exemptions or any other fiscal incentive sha ll be penalized through the seizure of the 
goods acquired with tax exemption, in order that they shall pay the taxes due at the 
time of the entry of the goods into the national territory, within a period of not more 
than 30 working days of the seizure and, if within this period the taxes and 
corresponding surcharges are not paid, the goods in question shall be surrendered to the Treasury, with the deprivation of any possibility of enjoying any tax privileges 
whatsoever for a period of five years." 
  Therefore, 
 
DECREE: 
 
Additions of and Amendments to Various Ar ticles of the Duty-Free Zone Regime Law, 
Executive Decree No. 29606-H-COMEX of 18 June 2001 
 
 Article 1.  An Article 33 bis, Article 33 ter, Article 33 quater, A rticle 33 quinquies  and  
Article 33 sexies shall be added to the Regulations Implementing the Duty-Free Zone Regime Law, 
Executive Decree No. 29606-H-COMEX of 18 June 2001, published in the Official Journal, 
La Gaceta , No.121 of 25 June 2001, to read as follows: 
   "Article 33 bis.  In conformity with Article 20(b) of Law No. 7210 and the amendments 
thereto, Duty-Free Zone Regime beneficiar ies may enjoy exemption from all taxes and 
consular fees on imports of automotive vehicles required for the operation, production, 
administration and transport activities of the en terprise.  The followin g vehicles shall be 
exempt: 
 
  - Chassis and cabin of vehicles with one to two tonnes load capacity; 
  - trucks or truck chassis; 
 - "pick-ups" of one to two tonnes, a single or double cabin, and with a 
maximum cylinder capacity of 4,000 cubic centimetres; 
  - vehicles with capacity for at least 15 passengers. 
  In order to enjoy this benefit the interested party must submit to PROCOMER a formal 
application for exemption, using the import form designed for that purpose by the Ministry 
for Finance.  The beneficiary shall state on that form, by a sworn declaration, the use to be 
made of the vehicles for which exemption is requested. 
 G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 18 
 
 
   Provided that the application for exemption complies with the requirements laid down in 
Article 20(b) of Law No. 7120 and the provisions of these Regulations, PROCOMER shall 
issue the corresponding recommendation to the Exemptions Department of the Directorate 
General of Finance.  
 
 Article 33 ter.  It shall be the responsibility of the Ministry of Finance, through the 
Exemptions Department of the Directorate-Genera l of Finance, to grant authorization for the 
exemptions of vehicles in accordance with  the provisions in Law No. 7210 and the 
amendments thereto;  to exercise due supe rvision of the procedures for exemption and 
payment of taxes for the relevant vehicles so as to ensure proper supervision of the goods exempted;  to carry out inquiries so as to check that the various offices involved duly carry 
out the functions laid down in these Regulations and other functions indicated in the relevant 
legislation. 
 
 Article 33 quater.   In order to ensure that the vehicle is effectively brought in under the 
Regime, once exemption has been granted by the Ministry of Finance, the beneficiary shall 
fill out a Duty-Free Zone Customs Declaration with  the exemption as approved attached to it. 
 
 Once the above-mentioned procedure has been completed, in order to obtain the special 
"ZFE" number plates the beneficiary must apply to PROCOMER for a certificate to be sent to 
the National Registry Office, requesting the registration of the exempted vehicle and the granting of the above-mentioned number plates. 
 
 Article 33 quinquies.  Beneficiary enterprises must comply with the following requirements 
for the use of the exempted vehicles: 
 
(a) Use the vehicles solely and exclusively fo r tasks directly related to the activity 
authorized in the agreement granting Duty-Free Zone Regime status; 
(b) mark the vehicles with a distinctive sign on both front doors showing the emblem or 
logo and the name of the beneficiary enterprise, together with the words " Uso 
exclusivo de zona franca " (For use exclusively in the Duty-Free Zone).  This sign 
shall have at least the following dimensions:  30 cm. long, 20 cm. wide and with letters that are at least 2 cm. high.  The colours of the sign must contrast with the 
colour of the vehicle so as to be easily visible; 
(c) bear the special number plates provided by the National Registry Office; 
(d) be driven by the beneficiary or by the personnel duly included on the beneficiary's 
staff list notified to the Costa Rican Soci al Welfare Fund, for the purposes of 
activities directly and strictly related to the operation, administration, production and 
transport activities of the ente rprise.  In such circumstances the driver must carry in 
the vehicle the relevant authorization for use issued by the legal representative of the 
beneficiary; 
(e) keep a register of the authorizations granted to the employees included on the staff 
lists to drive the vehicles. 
 Article 33 sexies .  The use of the vehicle for unauthorized activities or by persons other than 
those authorized by the beneficiary will involve th e loss of the benefit an d will give rise to the 
confiscation of the vehicle by the competent authorities."  
  G/SCM/N/155/CRI 
 G/SCM/N/160/CRI 
 Page 19 
 
 
   Article 2.  Article 34(e) of the Regulations  Implementing the Duty-Free Zone Regime Law, 
Executive Decree No. 29606-H-COMEX of 18 June 2001, published in the Official Journal, 
La Gaceta , No. 121 of 25 June 2001, shall be amended to read as follows: 
 
 "(e) To submit an annual operating report to PROCOMER, in the manner laid down in 
these Regulations, and any other reports requested by PROCOMER, COMEX or the 
tax and Customs authorities in the performance of their functions.  The annual 
operating report may be submitted by the Regime beneficiary to PROCOMER by 
electronic data transmission, using the form ats and procedures established for such a 
purpose.   
 
 If the report is submitted by electro nic data transmission, Article 18 bis of these Regulations 
shall apply.   
 
 The supporting documents that the beneficiaries must append to the report shall include a 
sworn declaration made by the legal representa tive stating the use that has been made, during 
the fiscal period, of the vehicle(s) which has/have been brought into the Zone under the terms 
of the Regime, together with a copy of the ce rtificate of ownership issued by the National 
Registry Office." 
  Article 3.  A subparagraph (n) shall be added to Article 34 of the Regulations Implementing 
the Duty-Free Zone Regime Law, Executiv e Decree No. 29606-H-COMEX of 18 June 2001, 
published in the Official Journal, La Gaceta , No. 121 of 25 June 2001, to read as follows: 
 
 "(n) to make proper use of the vehicles that  have entered under the terms of the Regime and 
comply with the provisions established by  these Regulations in this connection." 
 
 Article 4.  These provisions sh all take effect as from the date  of their publication in the 
Official Journal La Gaceta .  
 
 Single transitory provision.  Beneficiaries that have vehicles that have entered under the terms 
of the Duty-Free Regime shall have a period of thr ee calendar months as of the publication of this 
Executive Decree to comply with the provisions on markings contained in Article 33 quinquies . 
 
 Done at the Office of the President of the Republic, San José, 7 July 2006.  G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 20 
 
 
   
AMENDMENTS TO THE REGULATIONS IMPLEMENTING  
THE DUTY-FREE ZONE REGIME LAW 
No. 33291 
 
THE PRESIDENT OF THE REPUBLIC, THE MINISTER OF FINANCE 
AND THE MINISTER OF TRADE 
 
 
 In exercise of the powers conferred on them by Article 140(3) and (18) and Article 146 of the 
Political Constitution;  Articles 25(1), 27(1) and 28( 2)(b) of the General Public Administration Law, 
No. 6227 of May 1978;  Article 2(g), (h) and (i) and Article 8 of the Law Establishing the Ministry of 
Foreign Trade and the Foreign Trade Promotion Agency of Costa Rica, No. 7638 of 30 October 1996, 
and the Duty-Free Zone Regime Law, No. 7210 of 23 November 1990 and the amendments thereto, 
 
Whereas : 
 
1. The increase in foreign trade operations is one of the factors of development of our country, 
since such operations encourage export growth; 
 2. The operations of Duty-Free Zone enterpri ses in conjunction with domestic enterprises 
produce a significant flow of information that cannot be disregarded by the tax authorities; 
 
3. Executive Decree No. 29962-H-COMEX of 22 September 2001 amended Article 50 of the 
Regulations Implementing the Duty-Free Zone Regime Law, Executiv e Decree No. 29606-H-
COMEX of 18 June 2001 and the amendments thereto, placing an obligation on the 
enterprises benefiting from Duty-Free Zone Re gime status to provide information to the 
Foreign Trade Promotion Agency with regard to purchases exempt from sales and 
consumption taxes; 
 
4. The Directorate General of Taxation pursua nt to Resolution No. 08-97 of 23 June 1997 and 
the amendments thereto, published in La Gaceta  No. 170 of 4 September 1997, and 
Resolution No. 25-97 of 30 September 1997 and the amendments thereto, published in 
La Gaceta  No. 196 of 13 October 1997, made it compulsory to use forms authorized by the 
tax authorities for the provision of information of tax-related significance, established the 
characteristics of such forms and devised models D-150 and D-151 for those purposes; 
 
5. The information provided by the enterprises benefiting from Duty-Free Regime status to the 
Foreign Trade Promotion Agency does not include items that must be reported in the D-151 
form and involves practical problems of supervis ion by transferring the obligation to inform 
the tax authorities to an entity other than that which carried out the trading, business or 
financial operations, thereby creating distortions in the processing of information.   
 
Therefore : 
 
DECREE: 
 
 Article 1.   Article 50 and the first paragraph of Article 51 of Executive Decree No. 29606-H-
COMEX, published in La Gaceta  No. 121 of 25 June 2001, and the amendments thereto shall be 
amended to read as follows: 
   G/SCM/N/155/CRI 
 G/SCM/N/160/CRI 
 Page 21 
 
 
  "Article 50.  Transactions carried out under the provisions of the preceding article need not be 
accompanied by a Duty-Free Zone Customs Declaration for each such purchase.  The 
arrangements whereby General Sales Tax and Selective Consumption Tax are not payable 
shall be based on valid supporting documents issued by the domestic supplier enterprise and 
by the purchase order or equivalent document duly issued by the Duty-Free Zone Regime 
beneficiary.  Duty-Free Zone enterprises sh all send electronically to the Foreign Trade 
Promotion Agency (PROCOMER), in the format a nd using data media specified by the latter, 
a report on the local purchases of materials a nd merchandise made from domestic suppliers, 
submission of print-outs not be ing required.  This report must be submitted within the first 
ten business days of each month, with information on the local purchases made in the immediately preceding month;  it shall take the form of a sworn statement and PROCOMER 
shall send the corresponding information quarte rly to the Banco Central de Costa Rica and 
annually to the Directorate General of Taxation, as the basis for the necessary retrospective 
verification procedures. 
 
The beneficiary enterprise shall retain the lo cal purchase documents and information during 
the period stipulated by the Code of Tax Rules and Procedures. 
 
In the case of the purchase of public or private services, the beneficiary enterprise must 
submit a monthly report to PROCOMER, in the format and using data media as specified by the latter for this purpose;  PROCOMER shall forward the report to the Banco Central de 
Costa Rica. 
 
Without prejudice to the information required by PROCOMER, Duty-Free Zone enterprises 
shall submit to the Directorate-General of Taxa tion, in accordance with the procedures, time-
periods and requirements established by that  Directorate, information of tax-related 
significance arising from their economic, financia l and professional relationships with other 
persons." 
 
"Article 51.  For the purpose of preparing th e sworn statement on sales tax (form D-104), the 
domestic supplier shall report sales made to Duty-Free Zone Regime beneficiary enterprises 
in box No. 20 "Sales for export" so that they do not form part of the tax base. 
 
( … )" 
  Article 2.  As of the date of entry into forc e of this decree, Duty-Free Zone enterprises shall 
provide the Directorate-General of Taxation, in accordance with the proced ures, time-periods and 
requirements established by the latter, informatio n of tax-related significance arising from their 
economic, financial and professional relationships with other persons, it being adjusted to match the 
normal fiscal period established for the provision of such information, independently of the fiscal 
period authorized for the income-tax declaration. 
 
 Article 3.  Validity.  These provisions shall take  effect as from the date of their publication. 
 
 Done at the Office of the President of the Republic, San José, 20 June 2006. G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 22 
 
 
   
AMENDMENTS TO THE REGULATIONS IMPLEMENTING 
THE DUTY-FREE ZONE REGIME LAW 
No. 33360 
 
THE FIRST VICE-PRESIDENT 
ACTING ON BEHALF OF THE PRESIDENT OF THE REPUBLIC, 
THE MINISTER OF FINANCE AND THE 
MINISTER OF FOREIGN TRADE 
 
 
 In exercise of the authority conferred upon  them by Article 140(3), (18) and (20) and 
Article 146 of the Political Constitution and pursuant to Articles 25, 27(1), 28(2 )(b) and 103(1) of the 
General Public Administration Law, No. 6227 of 2 May 1978;  Article 2(g), (h) and (i) and Article 8 
of the Law Establishing the Ministry of Foreign Trade and the Foreign Trade Promotion Agency of Costa Rica, No. 7638 of 30 October 1996 and the amendments thereto, and Articles 50 and 175 of the 
General Customs Law, No. 7557 of 20 October 1995 and the amendments thereto, 
 
Whereas : 
 I. The increase in foreign trade operations is one of the factors of development of our country, since such operations encourage export growth; 
 
II. The Duty-Free Zone Regime attracts foreign investment, benefiting living conditions thanks 
to the creation of new sources of employment that have  a positive effect on the quality of life of Costa 
Rican citizens; 
 
III. International trade is very dynamic and requires rapid responses, so that enterprises, if they 
are to be competitive, must possess flexible and effici ent procedures that enable them to act rapidly in 
response to the demands of the market; 
 
IV. It is necessary to incorpor ate into the Regulations Implementing the Duty-Free Zone Regime 
Law, Executive Decree No. 29606-H-COMEX of 18 June 2001, rules to regulate the possible 
substitution of enterprises administering industrial pa rks in Duty-Free Zones, si nce there is currently a 
legal vacuum with regard to this aspect, which needs to be resolved, 
 
Therefore,  
DECREE: 
 
 Article 1.  Articles 22 ter and 22 quater  shall be added to Executive Decree No. 29606-H-
COMEX of 18 June 2001, to read as follows: 
 
"Article 22 ter – The substitution of an enterprise admini stering an industrial park in a Duty- 
Free Zone may be authorized, provided that th e substitute enterprise meets the requirements 
to enjoy Regime status and that it is stipulated in the executive agreement authorizing the 
substitution that the said enterprise shall assume all the obligations arising from its enjoyment of Regime status, including those deriving from the use of goods brought in under the Regime with tax advantages.  The status assumed by the substitute enterprise includes any 
responsibilities arising from the actions of the substituted enterprise. 
  G/SCM/N/155/CRI 
 G/SCM/N/160/CRI 
 Page 23 
 
 
   The relevant application shall be submitted by the enterprise administering the park to 
PROCOMER and shall meet the following requirements: 
 
 (a) Identification of the substit ute enterprise and a statement by it specifically expressing 
its willingness to take on the position of administrator under the above-mentioned 
conditions.  The substitute enterprise shall specifically accept all the responsibilities 
arising from the actions of the substituted en terprise with regard to its obligations and 
duties to the Ministry of Finance, the Ministry of Foreign Trade and the Foreign 
Trade Promotion Agency of Costa Rica with regard to the Duty-Free Zone Regime, without prejudice to the provisions of other rules and regulations. 
 
 (b) A certificate from an authorized public accountant containing a detailed inventory of 
the goods that have entered under the terms of the Regime, a copy of which must be 
sent to the customs office responsible for supervising the beneficiary enterprise. 
 
 (c) Identify, on the basis of the certificate mentioned in the previous subparagraph, the 
goods which will be transferred to the subs titute enterprise and the goods that will be 
definitively re-exported or imported. 
 
 (d) In the case of goods that will be defi nitively re-exported or imported it shall, as 
appropriate, submit the documents that demonstrate the performance of such 
operations. 
 
 In order for substitution to be granted the aforesaid requirements must be met.  Before 
PROCOMER recommends that the substitution  be authorized, it shall check that the 
enterprise has no administrative proceedings or tax obligations pending under the terms of its 
Regime status, and shall request the corresponding certificates from the Ministry of Finance.  
In the course of processing the application,  PROCOMER shall make its recommendation to 
the Ministry of Foreign Trade.  Once the Regime has been authorized by COMEX, the 
substitute enterprise must apply to the Directorat e-General of Customs to be granted the status 
of auxiliary customs agent, with the duties, ri ghts and obligations established by the General 
Customs Law, its regulations and related legi slation.  Until the substitute enterprise has 
acquired that status, it may not undertake any kind of customs operation under the Regime.  
As of the time when the executive agreement authorizing the substitution has been notified, 
the substituted enterprise shall proceed to tran sfer to the substitute enterprise within a 
maximum period of 15 working days, the goods that have entered the zone under the Regime, 
but that have not been definitively re-exported or imported.  If this is not done, the provisions 
contained in Article 56 of the Ge neral Customs Law shall apply. 
 
 Article 22 quater .  Once the final administrative decision has been taken concerning the 
revocation or renunciation of the Duty-Fr ee Zone Regime status of an enterprise 
administering the park, with all its legal cons equences, PROCOMER shall take steps so to 
notify all the beneficiary enterprises of the Regime  that operate within the relevant park.  In 
the aforesaid notification they will be urged to  propose an administration enterprise.  When 
the park operates within the framework of the rules regulating the property as a condominium 
the current administrator of the condominium may be proposed.  In the absence of a 
satisfactory proposal PROCOMER may, by means of an announcement published in the official journal " La Gazeta " and in at least one national newspaper, call upon any interested 
party to act as administration enterprise.  Once an enterprise ready to act as administrator has 
been found and the procedures laid down in this article have been completed, PROCOMER 
shall make its recommendation to the Ministry of Foreign Trade.  The new administration G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 24 
 
 
  enterprise must be up to date in fulfilling its ta x obligations and comply with the requirements 
to enjoy Regime status. 
 
 Until such time as a new administration enterp rise has been designated, the Duty-Free Zone 
Regime beneficiary enterprises located in the pa rk shall continue to apply the security and 
supervisory measures on the entry and exit of goods and persons.  This provision is without 
prejudice to the legal powers possessed by PROCOMER in this matter." 
 
 Article 2.  Validity .  These provisions shall take effect as  from the date of their publication. 
 
 Done at the Office of the President of the Republic, San José, 20 September 2006.  G/SCM/N/155/CRI 
 G/SCM/N/160/CRI 
 Page 25 
 
 
  AMENDMENT TO ARTICLE 25 TER  OF THE REGULATIONS IMPLEMENTING 
THE DUTY-FREE ZONE REGIME LAW, 
EXECUTIVE DECREE NO. 29606-H-COMEX OF 18 JUNE 2001 
No. 33483 
 
THE FIRST VICE PRESIDENT 
ACTING ON BEHALF OF THE PRESIDENT OF THE REPUBLIC, 
THE MINISTER OF FINANCE AND THE 
MINISTER OF FOREIGN TRADE 
 
 
 In exercise of the authority and powers conf erred on them by Article 140(3), (18) and (20) 
and 146 of the Political Constitution;  and pursuant to Articles 25, 27(1), 28(2)(b) and 103(1) of the 
General Public Administration Law, No. 6227 of 2 May 1978;  Article 2(g), (h) and (i) and Article 8 
of the Law Establishing the Ministry of Foreign Trade and the Foreign Trade Promotion Agency of Costa Rica, No. 7638 of 30 October 1996;  the Duty-Free Zone Regime Law, No. 2710 of 
23 November 1990, and Articles 50 and 175 of the General Customs Law, No. 7557 of 
20 October 1995, 
 
Whereas : 
 
I. The increase in foreign trade operations is one of the factors of development of our country, 
since such operations encourage export growth; 
 
II. The Duty-Free Zone Regime attracts foreign investment, benefiting living conditions thanks 
to the creation of new sources of employment that have  a positive effect on the quality of life of Costa 
Rican citizens; 
 
III. International trade is very dynamic and requir es rapid responses, so that enterprises, if they 
are to be competitive, must possess flexible and effi cient procedures that enable them to act rapidly in 
response to the demands of the market; 
 
IV. It is necessary to incorpor ate into the Regulations Implementing the Duty-Free Zone Regime 
Law,  Executive Decree No. 29606-H-COMEX of 18 June 2001, rules to regulate properly and 
effectively the procedures  relating to the granting and supervision of the Regime, and which will help 
to attract foreign investment into the country and generate employment; 
 
V. The industrial parks of Duty-Free Zones are a primary customer zone subject to customs 
supervision, so that the extension of the facilities of  a beneficiary enterprise within one and the same 
park does not involve a transfer of goods outside that primary customs zone, for which reason there is 
no need for additional controls and requirements over and above those established for such 
enterprises. 
 
Therefore, 
 
DECREE: 
 
Amendment to Article 25 ter of the Regulations Implementing the Duty-Free Zone Regime Law, 
Executive Decree No. 29606-H-COMEX of 18 June 2001 
 
 Article 1.  Article 25 ter of the Regulations Implementing the Duty-Free Zone Regime Law, 
Executive Decree No. 29606-H-COMEX of 18 June 2001, shall be amended to read as follows: G/SCM/N/155/CRI 
G/SCM/N/160/CRI Page 26 
 
 
   
 "Article 25 ter.  Expansion of the operating area of enterprises under the Duty-Free Zone 
Regime. 
 
 (1) Out-of-zone enterprises:  Enterprises located outside the zone may expand their 
operating area within an industrial zone pr ovided that the latter is in the jurisdiction 
of the customs supervisory office in which the beneficiary enterprise is located, and 
upon fulfilment of the requirements and obligations laid down in the customs 
legislation in force for out-of-zone enterprises. 
  (2) In-zone enterprises:  Enterprises locat ed within the zone may expand their operating 
area: 
 
  (a) Within the same zone; 
  (b) in another zone which is under the jurisdiction of the same customs 
supervisory office as the beneficiary enterprise. 
 
 In the instances envisaged in (1) and (2)(b) above, the beneficiary enterprises must meet the 
following conditions and requirements:   (a) Make an additional investment, in th e area it wishes to expand, of at least 
US$150,000 or the equivalent in the national currency; 
 
 (b) the expanded area shall be for the receipt, deposit, inspection, production and 
clearance of goods, solely for the activity previously authorized by PROCOMER.  To 
that end, the expansion of the operating area must fulfil the same obligations as the 
General Customs Law, the amendments ther eto and its regulations and the Duty-Free 
Zone Regime Law and its regulations impose  on beneficiary enterprises of the Duty-
Free Zone Regime, in terms of customs supervision; 
 
 (c) in the expanded area, the enterprise shall maintain a permanent inventory system 
which shall be separate from inventories kept in the area originally authorized; 
 
 (d) consequently, no raw materials, equipment, machinery or merchandise shall be 
located in or transferred from the beneficiary enterprise to the expanded area or vice 
versa, and each expanded area shall be used solely for the purposes authorized, other 
than in exceptional cases duly justified by the beneficiary enterprise and approved by 
the competent customs office by substantiated decision. 
  
 Enterprises that expand their ar ea within the same park must fulfil the same obligations as the 
General Customs Law, the amendments thereto and its regulations impose on Regime beneficiary 
enterprises. 
 
 Applications for area expansion shall be submitted to PROCOMER for authorization and 
must expressly state the activities to be carried out in  the expanded area.  If it finds the application to 
be in order, PROCOMER shall issue an authorizat ion, subject to the requisite fiscal and customs 
controls of the new area, confirmation of which shall be provided by the competent customs authority. 
 
 All the foregoing shall be without prejudice to  any relevant customs controls of enterprises 
under the Duty-Free Zone Regime, carried out by the National Customs Service. 
  G/SCM/N/155/CRI 
 G/SCM/N/160/CRI 
 Page 27 
 
 
   Article 2.  Validity.  These provisions shall take  effect as from the date of their publication. 
 
 Done at the Office of the President of the Republic, San José, on 2 November 2006. 
 
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