WORLD TRADE  
ORGANIZATION   
G/SCM/N/243/CRI 
4 July 2012 
 (12-3560) 
Committee on Subsidies and 
Countervailing Measures Original: Spanish 
 
 
 
SUBSIDIES 
 
Continuation of Extension under Article  27.4 of the Agreement on Subsidies 
and Countervailing Measures of the Transition Period for the Elimination 
of Export Subsidies pursuant to the Procedures Contained in the 
General Council Decision in Document WT/L/691 
 
Updating Notification 
 
COSTA RICA 
   The following communication, dated 28 June 2012,  is being circulated at the request of the 
delegation of Costa Rica.  
_______________ 
 
  Pursuant to the procedures agreed upon in General Council Decision WT/L/691 in respect of the continuation of the extension under Article  27.4 of the Agreement on Subsidies and 
Countervailing Measures and, in particular, the provisi ons of paragraphs 1(c), 1(d), 2 and 3 of that 
document, the Government of Costa Rica hereby submits this updating notification concerning the 
programmes for which the extension has been granted (see documents G/SCM/61/Add.1 to 8 
and G/SCM/62/Add.1 to 8).   In compliance with the standstill requirements, the programmes contained in this notification 
have not undergone any modification. 
 G/SCM/N/243/CRI 
Page 2  
 
  CONTENTS 
 
Page 
 
NOTIFICATION .................................................................................................................. ................ 2 
 
ANNEXES ....................................................................................................................... .................... 16 
 
EXECUTIVE DECREE NO. 36725 COMEX-H OF 26 JULY 2011, PUBLISHED IN OFFICIAL JOURNAL ( LA GACETA ) NO. 170 OF 5 SEPTEMBER 2011 ........................................ 16 
 
EXECUTIVE DECREE NO. 36514 COMEX-H OF 6 JANUARY 2011, PUBLISHED IN OFFICIAL JOURNAL ( LA GACETA ) NO. 69 OF 7 APRIL 2011 ...................................................... 34 
 EXECUTIVE DECREE NO. 36726 COMEX-H OF 26 JULY 2011, PUBLISHED IN 
OFFICIAL JOURNAL ( LA GACETA ) NO. 170 OF 5 SEPTEMBER 2011 ........................................ 55 
   
NOTIFICATION 
 A. S
TANDSTILL REQUIREMENTS OF THE PROCEDURES FOR EXTENSIONS UNDER ARTICLE 27 
 The programmes contained in this notificati on, 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 WT/L/691.  
B. T
HE 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 requirements and 
obligations laid down in Law No . 7210 and amendments thereto, a nd its implementing Regulations.  
One of the qualification criteria was the requirement that at least 75 per cent of an enterprise's 
production be exported.1  The Regulations establish the definition of "new investments in the 
country".  The establishment location of a group of enterprises operating as beneficiaries of this Regime is called a "Duty-Free Zone", which is requ ired to be a defined area, without a resident 
population, authorized by the Executive to operate in this capacity.  2. Period of notification 
 This notification provides a description of th e Duty-Free Zone Regime corresponding to the 
calendar year 2011.  
                                                      
1 As indicated in paragraph 10(d) (Action plan for the elimination of export subsidies) of this section, 
this requirement was eliminated wh en amending the Duty-Free Zone Regime Law, which came into force in 
January 2010 for new processing enterprises classi fied under the new category (f) in Article 17 of 
Law No. 7210.  G/SCM/N/243/CRI 
 Page 3 
 
 
  3. Policy objective 
 The primary objective of the Law is to foster  the socio-economic development of Costa Rica 
by attracting foreign investment, encouraging dom estic investment and promoting exports.  The 
Duty-Free Zone Regime is an important economic inst rument 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 engage d in a wide range of operations and production 
processes which contribute to the generation of w ealth and technological know-how and increase the 
country's international competitiveness.  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 amendments thereto.
2 
• Regulations implementing the Duty-Free Zone Regime Law Executive Decree 
No. 29606 H-COMEX of 18 June 2001 (full text attached as an Annex to Costa Rica's notification in document G/SCM/N/ 71/CRI of 5 March 2002) and amendments 
thereto.
3 
 
                                                      
2 The amendments to Law No. 7210 of 23 November 1990 are contained in:  Law No. 7467 of 
20 December 1994, Law No. 7535 of 1 August 1995, Law No. 7638 of 30  October 1996, Law No. 4924 of 
17 September 1997, Law No. 7830 of 22 September 1998 (full texts of this legislation are attached as Annexes 
to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002), Law No. 8262 of 2 May 2002 amended Article 23 of Law No. 7210 (the full text of this Article is attached as an Annex to Costa Rica's 
notification in document G/SCM/N/95/CRI of 8 July 2003) and Law No. 8794 of 12 January 2010, 
"Amendments to the Duty-Free Zone Regime Law No. 7210 of 23 November 1990 " (the full text of this 
amendment is attached as an Annex to Costa Ri ca's notification in document G/SCM/N/211/CRI of 
12 July 2010). 
3 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, Executive Decree No. 30849 of 23 October 2002 (all of which 
are attached as Annexes to Costa Rica's notification in  document G/SCM/N/95/CRI of 8 July 2003), Executive 
Decree No. 31585-H-COMEX of 20 October 2003, Executive Decree No. 31715-H-COMEX-MEIC of 
2 March 2004 (attached as an Annex to Costa Rica' s notification in document G/SCM/N/114/CRI of 
2 July 2004), Executive Decree No. 32232 of 16 Dece mber 2004 (attached as an Annex to Costa Rica's 
notification in document G/SCM/N/123/CRI), Execu tive Decree No. 31812-H-COMEX of 30 April 2004, 
Executive Decree No. 32804 of 30 November 2005 (attached as an Annex to Costa Rica's notification in document G/SCM/N/146/CRI), Executive Decree No. 33204 of 6 June 2006, Executive Decree No. 33283 of 
7 July 2006, Executive Decree No. 33291 of 20 June 2006, Executive Decree No. 33360 of 20 September 2006, 
Executive Decree No. 338 41-H-COMEX of 15 December 2006, Executive Decree No. 33483 of 
2 November 2006 (attached as an Annex to Cost a Rica's notification in document G/SCM/N/160/CRI) 
and Executive Decree No. 34166 of 4 D ecember 2007 (attached as an Anne x to Costa Rica's notification in 
document G/SCM/N/177/CRI/Rev.1).  The Regulations implementing the Duty-Free Zone Regime Law, Executive Decree No. 34739-COMEX-H of 29 August 2008, repealed Executive Decree No. 29606-H-COMEX 
(attached as an Annex to Costa Rica's notificatio n in document G/SCM/N/186/CRI-G/SCM/N/192/CRI).  
The latter did not amend or alter the benefits of the Du ty-Free Zone Regime.  The most recent amendments are 
contained in Executive Decree No. 36000-COMEX-H of 28 April 2010 " Amendments to the Regulations 
implementing the Duty-Free Zone Regime Law - E xecutive Decree No. 34739-H -COMEX of 29 August 2008 " 
(the full text of this amendment is attached as an Annex to Costa Rica's notification in document 
G/SCM/N/211/CRI of 12 July 2010) and Executive Decree No. 36725-COMEX-H of 26 July 2011 (the text is 
attached to this notification). G/SCM/N/243/CRI 
Page 4  
 
  • General Customs Law No. 7557 of 20 Octobe r 1995, Section I, Chapter V (Duty-Free 
Zone Regime
4) and amendments thereto.5 
• Regulations implementing the General Cu stoms Law, Chapter X (Duty-Free Zone 
Regime), Executive Decree No. 25270-H of 28 June 19966 and amendments thereto.7 
5. Form of the subsidy 
 The subsidy is essentially an exemption from pa yment of all taxes, consular fees and duties 
and is provided in the manner set out below. 
  The incentives granted by this Regime are:  
(a) Inward clearance into the duty-free zone  of raw materials, manufactured and 
semi-manufactured products, co mponents and parts, packing materials and containers 
and any other goods required for the operations of the enterprise, without payment of 
any taxes or consular fees on their clearance.
8 
(b) Inward clearance into the duty-free zone of  machinery, equipment, accessories and 
spare parts, without payment of any taxes or consular fees on their importation, and exemption from all import taxes and c onsular fees on the importation of motor 
vehicles required for operating, production, administrative and transport activities. 
(c) Exemption from all taxes and consular f ees on imports of fuel, oil and lubricants 
required for the operation of such enterprises, provided that such goods are not produced within the country with the re quired quality, quantity and timeliness. 
                                                      
4 The parts referred to are attached as Anne xes 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. 
5 The amendments to the General Customs Law No. 7557 of 20 October 1995 are contained in 
Law No. 7900 of 3 August 1999 (available for consultation in the archives of the Rules Division), 
Law No. 8373 of 4 August 2003 and Law No. 8419 of 28 June 2004. 
6 The parts referred to are attached as Anne xes 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. 
7 The amendments to the Regulations implementing the General Customs Law, Chapter X (Duty-Free 
Zone Regime), Executive Decree No. 25270-H of 28 June 1996, are contained in:  Executive Decree No. 25295 
of 17 June 1996 (available for consultation 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 in document G/SCM/N/71/CRI of 
5 March 2002), Executive Decree No. 26961 of 30 March 1998 (available for consultation in the archives of the 
Rules Division), Decree No. 27717 of 23 February 1999 (available for consultation in the archives of the Rules Division), Executive Decree No. 28242 of 30 September 1999 (available for consultation in the archives 
of the Rules Division), Executive Decree No. 28976 of 27 September 2000 (available for consultation in the 
archives of the Rules Division), Executive Decree No. 31667-H of 5 March 2004 (available for consultation in 
the archives of the Rules Divisi on), Executive Decree No. 32098 of 23 September 2004 (available for 
consultation in the archives of the Rules Division), Executive Decr ee No. 33915 of 30 January 2007, 
and Executive Decree No. 35424 of 7 August 2009 (the full text of this amendment is attached as an Annex to 
Costa Rica's notification in document G/SCM/N/211/CRI of 12 July 2010). 
8 Law No. 8794 of 12 January 2010, which amended the Duty-Free Zone Regime Law No. 7210 of 
23 November 2010, provides that packing, wrapping and containers and computer equipment and electronic waste and other waste materials resu lting from activities by enterprises in  the duty-free zone are exempt from 
any import tax or subsequent duty if they are intended for recycling or reuse.  G/SCM/N/243/CRI 
 Page 5 
 
 
  (d) Exemption from all taxes relating to the expor t or re-export of goods.  This exemption 
is granted for the re-export from the Duty -Free Zones of production machinery and 
equipment which entered under the Law. 
(e) Exemption from payment of taxes on capita l and net assets, payment of land tax and 
of the tax on the transfer of real estate. 
(f) Exemption from sales and consumpti on taxes 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 
calculated in relation to gross or net earni ngs, dividends paid to shareholders, or 
revenue or sales. 
(i) Exemption from all municipal or business taxes. 
(j) Exemption from all taxes on imports or expor ts of commercial or industrial samples. 
(k) To enhance their business operations, ente rprises benefiting under the Duty-Free 
Zone Regime are entitled to freely execute in  foreign currency all kinds of deeds and 
contracts pertaining to their internationa l transactions or transactions with other 
enterprises established under the Duty-Free Zone Regime. 
(l) Enterprises based in relatively less-develope d zones are entitled to a credit equivalent 
to 10 per cent of the total amount of wages a nd salaries paid the previous year;  this 
amount decreases by two percentage points per year and expires after five years. 
(m) Export-processing enterprises which, having operated for four years under the 
Duty-Free Zone Regime, reinvest in Costa Rica are entitled to an additional 
exemption from payment of income tax, at  a percentage corresponding to the amount 
of the reinvestment as a proportio n of the original investment. 
 The above exemptions and concessions remain subject to fulfilment of certain specific 
requirements laid down by laws a nd regulations, and international ag reements signed and approved by 
Costa Rica. 
 
6. Beneficiaries and mechanism 
 The following types of enterprise qua lify for the Duty-Free Zone Regime: 
 
(a) Export-processing industries which produce, process or assemble goods for export or 
re-export. 
(b) Export-trading enterprises with no production activity, which simply handle, 
repackage or redistribute non-traditional goo ds and products for export or re-export. 
(c) Service industries and enterprises which export services to natural or legal persons 
domiciled abroad, or which provide services to companies that are beneficiaries of the Duty-Free Zone Regime, in the latter case, provided that the services are directly 
related to the production processes of those companies. G/SCM/N/243/CRI 
Page 6  
 
  (d) Enterprises which manage parks where en terprises are to be based under the 
Duty-Free Zone Regime, provided that th e parks meet the minimum infrastructure 
and service availability requirements laid down in the Regulations implementing the 
Law. 
(e) Enterprises or other entities engaged in scientif ic research with a view to raising the 
technological level of the country's industr ial or agri-business activity and foreign 
trade. 
(f) Enterprises operating shipyards or dry or fl oating docks for shipbu ilding, repair or 
maintenance.
9 
 Banking, financial and insurance entities based  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 Regime status.10 
  There are several stages in the granting of Regime status:  
(a) Any natural or legal person wishing to join  the Duty-Free Zone Regime is required to 
submit the relevant application to the Corporation
11 (these rights and obligations are 
currently vested in the Foreign Trade Pr omotion 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.  All applications must  comply with the relevant instructions 
issued by the Corporation. 
(b) The Corporation examines the application and information included, subject to 
provision of all the required details, and forwards an opinion to the Board of 
Directors, which is then required to decide on the matter by no later than at the 
regular session following receipt of the opinion , or at a special meeting if so agreed 
by four of its members. 
(c) At its discretion, the Corporation may seek expert opinions from various State 
institutions to assist its examination of the enterprise's application. 
(d) If the recommendation is approved, it is then ratified by the Executive by means of a 
resolution citing the details specified in  the Regulations implementing the Law. 
                                                      
9 Law No. 8794 of 12 January 2010 amended Law No. 7210 of 23 November 2010 on the Duty-Free 
Zone Regime and established a new category for processing industries which produce, process or assemble goods, irrespective of whether or not they export, provi ded that they meet the requirements laid down in 
Article 21 bis of the said Law, as set out in paragraph 10(d) (A ction plan for the elimination of export subsidies) 
of this section. 
10 Law No. 8794 of 12 January 2010 amended Law No. 7210 of 23 November 2010 on the Duty-Free 
Zone Regime and also established that enterprises that are engaged in the mining, exploration or extraction of 
hydrocarbons, in the production or sale of arms and ammunition containing depleted uranium or in the production or sale of any type of arms or that generate electric power (unless the power is for their own 
consumption) are not eligible for the Duty-Free Zone Regime either. 
11 "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/243/CRI 
 Page 7 
 
 
  7. Estimated amount of the subsidy 
 As this subsidy involves exemptions from a nu mber of different taxes and consular fees, 
which vary according to the level of compliance wi th the specified requirements, the comprehensive 
information required to estimate the amount of the subsidy is not available.  8. Duration of the subsidy 
 Regime benefits apply as of the date on whic h Duty Free Regime status is granted to the 
applicant enterprise.  With regard to duration, th e main incentives of the Duty-Free Zone Regime are 
subject to a specific expiry date.  Moreover, wher e there is non-compliance with the conditions laid 
down, Regime status may be revoked by the Ministry of Foreign Trade. 
 
 Of the incentives described in section B.5 of th is notification, the following are subject to a 
specific expiry date:  
• Exemption from taxes on capital and net asset s and from payment of land tax for a 
period of ten years.
12 
• Exemption from all taxes on profits and an y other taxes for which the tax base is 
calculated in relation to gross or net earni ngs, dividends paid to shareholders, or 
revenue or sales13, according to the following distinctions14: 
(a) For enterprises based in "relatively more developed zones", 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 "relativel y less-developed zones", 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,  having operated for four years 
under the Regime, reinvest in Costa Rica, there may be a further exemption 
of 75 per cent for up to four years, depending on the amount reinvested. 
 
• Exemption from all municipal and bus iness taxes for a period of ten years.
15 
9. Trade effects of the subsidy16 
 At present, 293 enterprises enjoy Duty-Free Zone status.  Between them, those firms 
generated 51.5 per cent of Costa Rica's tota l exports in 2011, as compared with 1991, 
when 81 enterprises covered by the Regime accounted  for only 9.3 per cent of total exports.  In 2011, 
1,225 different products were -exported to 109 countries under the Duty-Free Zone Regime. 
 
                                                      
12 See section B.5(e) of this notification. 
13 See section B.5(h) of this notification. 
14 Law No. 8794 of 12 January 2010 amended Law No. 7210 of 23 November 2010 on the Duty-Free 
Zone Regime and modified these parameters, determining a differentiated tax incentiv e for profits tax depending 
on whether or not the enterprises benefiting are based w ithin or outside the Expanded Greater Metropolitan Area 
(GAMA), as set out in paragraph 10(d) (Action plan for the elimination of export subsidies) of this section. 
15 See sections B.5(i) and (m) of this notification. 
16 Information supplied by the Foreign Trade Promotion Agency of Costa Rica (PROCOMER). G/SCM/N/243/CRI 
Page 8  
 
   It should be noted that, in 2011, sales abroad by these enterprises amounted 
to US$5,410.2 million.  At present the Duty-Free Zone Regime directly generates jobs for approximately 65,915 workers.  
Costa Rica:  Direct jobs created by the Duty-Free Zone Regime 
 
 2009 2010 2011 
Duty-Free Zone Regime 53,000 58,033 65,915 
Source : PROCOMER. 
 
 Along with this favourable socio-economic im pact, the installation 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 US$ million  
 
 2009 2010 2011 
Duty-Free Zone 4,701.2 4,838.6 5,410.2 
Total exports 8,675.6 9,370.8 10,502.04 
Source : PROCOMER. 
 
10. Action plan for the elimination of export subsidies 
(a) Notification of beneficiaries 
  Regime benefits are subject to the provisi ons of Article 27.4 of the WTO Agreement on 
Subsidies and Countervailing Measures and the co rresponding extensions granted by the WTO in 
documents G/SCM/39 and WT/L/691.  Every contr act in which benefits are granted therefore 
includes a clause that makes its duration subject to WTO rules.  Accordingly, the benefits as designed 
will have effect until 31 January 2015.  In acco rdance with the commitments made in Decision 
WT/L/691, Costa Rica has notified all the benefi ciaries under the programme that no more export 
subsidies will be granted to processing enterp rises after the end of calendar year 2015. 
 
(b) Internal procedures 
  As part of the National Development Plan (drawn up in 2006), a new strategy for attracting 
investment has been designed consistent with WT O rules.  In this respect, taking into account 
paragraph 1(e) of General Counc il Decision WT/L/691, an inter-institutional commission (Ministry of 
Finance Ministry of Foreign Trade-PROCOMER) has been established to assess any measures that 
need to be taken to provide beneficiaries with lega l certainty, fulfil the commitments undertaken and, 
at the same time, encourage higher levels of both domestic and foreign investment.  In 2008 and 2009, 
this commission, in consultation with other aut horities, began the process of drawing up proposed 
amendments to the Duty-Free Zone Regime Law.  
(c) Legislative and regulatory changes 
  As a result of the work carried out by th e inter institutional commission and taking into 
account the inputs received during the consultations with other bodies and organizations, a draft law 
on "Amendments to the Duty-Free Zone Regime Law No. 7210 of 23 November 1990 " was prepared 
and put before the Legislative Assembly by the Executive on 21 April 2009.  The draft was approved 
by the Legislative Assembly on 17 December 2009 and signed by the Executive on 12 January 2010.   G/SCM/N/243/CRI 
 Page 9 
 
 
  Accordingly, Law No. 8794 of 12 January 2010, entitled " Amendments to the Duty-Free Zone Regime 
Law, No. 7210 of 23 November 1990 " came into effect on 22 January 2010 when it was published in 
Official Journal La Gaceta  No. 15 of 22 January 2010.  The full text of Law No. 8794 was included as 
an Annex to Costa Rica's notification in document G/SCM/N/211/CRI of 12 July 2010.  
 After the necessary procedures for amending the Duty-Free Zone Regime Law had been 
completed, in the first few months of 2010 th e inter institutional commission started work on 
preparing the Regulations implementing the Law, an d this work was completed towards the end of 
April, a few days before the new Government of the Republic took office on 8 May.  The Regulations 
implementing the Law were signed on 28 April 2010 a nd came into effect on 15 June 2010.  The full 
text of the Regulations (Decree No. 36000 COMEX-H of 28 April 2010) was included as an Annex to 
Costa Rica's notification in document G/SCM/N/211/CRI of 12 July 2010.  
(d) Description of the amendments 
  The amendments to the Duty-Free Zone Re gime Law No. 7210 incorporate the following 
major changes:  • Elimination of the link between incentives and export  
 
 In order to comply with the provisions of the WTO Agreement on Subsidies and 
Countervailing Measures, the amendments to the Law incorporate a new category of processing 
enterprise which is not required to export a percenta ge of production in order to be eligible for the 
Duty-Free Zone Regime.  This new category appears in Article 17(f) of the current Law, which states 
"Processing industries which produce, process or assemb le goods, irrespective of whether or not they 
export, provided that they meet the requirements laid down in Article 21 bis of this Law". 
 
 Enterprises which seek admission to the Duty -Free Zone Regime under this new category 
described above must comply with the following requirements:   - They must be in sectors that are strategic for the country's development or are 
established outside the Expanded Greater Metropolitan Area (GAMA); 
 
 - they must make new investment in Costa Rica the nature and special features of 
which are such that it could be made in a nother country or be transferred to another 
country;  and 
 
 - on the date of submitting the application for Duty-Free Zone Regime status, they 
must be totally or partly exempt from, or not subject to, payment of income tax in Costa Rica. 
  A Special Commission appointed by the Executiv e for this purpose will be responsible for 
defining strategic sectors.
17  When defining a strategic sector, this Special Commission shall take into 
consideration the National Development Plan, the existing criteria governing the sectors concerned, 
and the following guidelines:  the projects are deemed  to make a substantial contribution to social 
development and create quality jobs;  the projects ma ke an effective contribution to modernizing the 
country's production structure as a result of the high technology involved;  the projects encompass research and development activities;  or the projects foster innovation and transfer of technology or 
                                                      
17 Executive Decree No. 35999 of 28 April 2010, " Regulations of the Special Commission on the 
Definition of Strategic Sectors " (the full text is attached as an  Annex to Costa Rica's notification 
G/SCM/N/220/CRI  and G/SCM/N/226/CRI  of 29 July 2011). G/SCM/N/243/CRI 
Page 10  
 
  promote the incorporation of clean technology, in tegrated waste management, energy savings and 
efficient water management.   The Special Commission, meeting in Special Session on 12 November 2010
18, agreed to 
define strategic sectors as follows: 
 
• Projects in relation to which the enterprise operating under the Duty-Free Zone 
Regime employs on average at least 200 workers per year, duly recorded on the payroll, as from the date of commencemen t of production operations, as provided for 
in the executive agreement granting Regime status. 
• Projects carried out by an enterprise operating under the Duty-Free Zone Regime in 
any of the following sectors: 
  - Advanced electronics; 
  - advanced electronic components;   - medical devices, equipment, implants  and inputs and the highly specialized 
packing or containers for such goods; 
  - automobiles; 
  - high precision machined parts and components; 
  - aerospace and aeronautics;   - pharmaceutics and biotechnology;   - renewable energy sources;   - automation and flexible manufacturing systems;   - advanced materials. 
 
• Projects in the context of which the ente rprise operating under the Duty-Free Zone 
Regime assigns at least the equivalent of 0.5 per cent of its sales to the research and development expenses of its local operations;  and 
• Projects in which the enterprise operating under the Duty-Free Zone Regime has at 
least one of the following certifications for its local operations: 
  - ISO (International Organization fo r Standardization) 14001 (14004) or 
equivalent; 
  - LEED (Leadership in Energy and Environmental Design) or equivalent.  • Encouragement for enterprises to set up in less-developed areas  
 
 Eligible zones outside the GAMA are less-developed areas of the country so the amendments 
include a series of incentives intended to encourage Duty-Free Zone Regime beneficiary enterprises to 
set up in these areas and to foster their economic and social development.   These incentives include the following:  
 - Lower investment requirements:  To be  eligible for the Duty-Free Zone Regime 
within the GAMA, an enterprise must ma ke an initial investment in fixed assets 
amounting to US$150,000 if it wishes to set up in an industrial park and US$2,000,000 if it wishes to set up outside an industrial park.  For enterprises 
                                                      
18 Agreement of the Special Commissi on on the Definition of Strategic Sectors of 12 November 2010, 
published in Official Journal La Gaceta  No. 229 of 25 November 2010 (the full text is attached as an Annex to 
Costa Rica's notification G/SCM/N/220/CRI  and G/SCM/N/226/CRI  of 29 July 2011).  G/SCM/N/243/CRI 
 Page 11 
 
 
  wishing to set up outside the GAMA, the investment requirements are US$100,000 
within an industrial park and US$500,000 outside. 
 
 - Differentiated fiscal incentives:  Enterp rises situated within the GAMA will pay a 
rate of six per cent (6 per cent) of thei r profits for the purposes of the Income Tax 
Law for the first eight years, and fifteen per cent (15 per cent) for the following four 
years.  Enterprises outside the GAMA will pay zero per cent (0 per cent) of their profits for the purposes of the Income Tax La w during the first six years, five per cent 
(5 per cent) for the next six years, and fi fteen per cent (15 per cent) for the following 
six years. 
 
 - Megaprojects:  Enterprises which invest a minimum of US$10,000,000 under an 
investment plan to be carried out over a pe riod of eight years, calculated on the basis 
of the book value of the assets subject to depreciation, and which provide at least 
100 permanent jobs throughout the period in which the enterprise operates, as duly 
shown on the payroll, will be exempt from all profits tax, and from any other tax for 
which the tax base is calculated in relation to gross or net profits, dividends paid to 
shareholders, or revenue or sales.  This exemption will be 100 per cent for eight years 
and 50 per cent for a further four years provided that the enterprise sets up in a strategic sector within the GAMA, and 100 per cent for 12 years and 50 per cent for a further six years if the enterprise is s ituated in any sector outside the GAMA.  
Likewise, if the enterprise sets up outside the GAMA in a strategic sector and 
provides at least 100 permanent jobs, it is also  eligible for this exemption for 12 years 
at a rate of 100 per cent and for a further six years at 50 per cent. 
 
 - Encouraging poles of development:  The amendments to the Law include a 
commitment by the State to draw up ac tion plans to create the necessary services, 
infrastructure and operating conditions to en courage the establishment of enterprises 
in Duty-Free Zones and industrial parks or the modernization of those already existing in poles of development outside the GAMA.  The Law specifically mentions five poles of development to which priori ty will be given:  Limón, Puntarenas, 
Brunca Region, Guanacaste and Zona Norte. 
 
• Granting of tax credits for training  
 
 Beneficiary enterprises classified in the new category covered by Artic le 17(f) of the Law will 
have the right to a tax credit of 10 per cent for reinvestment of profits , costs incurred within or outside 
the country for training Costa Rican personnel or personnel resident in Costa Rica working for the 
enterprise in the country, as well as for costs incu rred within Costa Rica for training in micro, 
small and medium-sized enterprises which supply en terprises covered by the Duty-Free Zone Regime. 
 • Inclusion of criteria for strengthening li nks between Duty-Free Zone enterprises and 
local industry (production chains)  
 
 Enterprises supplying goods to enterprises establis hed in Duty-Free Zones may, in turn, apply 
for Duty-Free Zone Regime status if a signifi cant proportion of their total sales are to the said 
enterprises, "significant proportion" meaning at least forty per cent (40 per cent) of their total sales.  
 Supplier enterprises meeting this requirement will not be required to belong to a sector that is 
strategic for the country's development or to be lo cated in an area outside the GAMA.  They may be 
local enterprises engaged in activities in the country a nd do not therefore have to be exempt from, or 
not subject to, income tax.  G/SCM/N/243/CRI 
Page 12  
 
  • Sales on the domestic market  
 
 The amendments to the Law speci fy that the exemptions and benefits applicable to enterprises 
classified under the new Article 17(f) of the Law shall not be contingent in fact or in law upon export 
performance.  Such enterprises may therefore put th eir goods on sale in the domestic market, but in 
such cases all import taxes and customs procedures w ill apply.  Tariffs will only be paid on the inputs 
used for production, in conformity with international commitments.  C. T
HE INWARD PROCESSING REGIME  
1. Description of the subsidy 
 The Inward Processing Regime is the custom s 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 re-exported, w ithin the time-limits laid down in the relevant 
regulations, after undergoing processing, repair, rec onstruction, installation or assembly, or after 
being incorporated in sub-assemblies, machinery, tr ansport equipment in genera l or appliances with a 
higher degree of technological or functional comp lexity, or after being used for other similar 
purposes, under the conditions laid down in the regu lations or provisions stipulated for this purpose 
by the competent administrative authority.   Applications for a transition period for th e Inward Processing Regime refer solely to 
exemptions from import duties and direct and indirect  taxes that meet one of  the conditions laid down 
in paragraphs (e), (g), (h) or (i) of Annex I to the Agreement on S ubsidies and Countervailing 
Measures.  
2. Period of notification 
 This notification provides a description of the Inward Processing Regime corresponding to 
the calendar year 2011. 
 
3. Policy objective 
 The Inward Processing Regime is designed to  promote production, employment and foreign 
and domestic investment, which inevitably cont ributes to an increase in 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 in come levels, reducing 
unemployment and increasing the country's productivity and ability to compete internationally.  
4. Background and authority 
• General Customs Law, Law No. 7557 of 20 October 1995, Chapter VI (Processing 
Regimes)
19 and amendments thereto.20 
• Regulations implementing the General Customs Law, Chapter XIII (Inward 
Processing Regime), Executive Decree No. 25270-H of 28 June 199621 and 
amendments thereto.22 
                                                      
19 The parts referred to are attached as Anne xes 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. 
20 See footnote 4.  G/SCM/N/243/CRI 
 Page 13 
 
 
  • Regulations on the Inward Processing and Drawback Regimes, Executive Decree 
No. 26285-H-COMEX of 19 August 1997 (the full text is attached as an Annex 
to Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002), and amendments thereto.
23 
5. Form of the subsidy 
 The Inward Processing Regime a llows the entry of goods into national customs territory with 
the suspension of all types of taxes, subject to l odgement of a guarantee deposit.  The goods must be 
re-exported, within the time-limits laid down in the relevant regulations, after undergoing processing, 
repair, reconstruction, installation or assembly, or  after being incorporated in sub-assemblies, 
machinery, transport equipment in general or a ppliances with a higher degree of technological or 
functional complexity, or after being used for ot her similar purposes, under the conditions laid down 
in the regulations or provisions stipulated for this  purpose by the competent administrative authority. 
 
6. Beneficiaries and mechanism 
 To be eligible for the Regime, the enterpri se 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 op tion:  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 
on the definitive importation of the goods.  Simila rly, at the time of inward clearance of machinery 
and equipment under the Regime, they are require d 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. 
  Obligations for Regime beneficiaries include the following:  to submit reports on all their 
operations to PROCOMER's Manage ment Unit;  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 Service Auxiliary ;  to keep goods entering under the Regime in 
                                                                                                                                                                     
21 The parts referred to are attached as Anne xes 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. 
22 See footnote 6. 
23 The amendments to the Regulations implementing the Inward Processing and Drawback 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 (the full texts are attached as Annexes to 
Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002), Executive Decree No. 29286 of 30 January 2001, Executive Decree No. 29607 of 18 June 2001, Executive Decree No. 30125 of 
25 January 2002, Executive Decree No. 31848 of 25  May 2004, 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 in document G/SCM/N/146/CRI), Executiv e Decree No. 34165 of 4 December 2007 (t he full text of this amendment is 
attached as an Annex to Costa Rica's notification in  document G/SCM/N/177/CRI/R ev.1), Executive Decree 
No. 34738-COMEX-H of 29 August 2008 (the full text of this amendment is attached as an Annex to Costa Rica's notification in document G/SCM/N/211/CRI of 12 July 2010), Executive Decree 
No. 35423-COMEX-H of 7 August 2009 (the full text of this amendment is attached as an Annex to 
Costa Rica's notification in document G/SCM/N/211/CRI  of 12 July 2010), Executive Decree No. 36514 of 
6 January 2011 (text attached to this notification) and Executive Decree No. 36726 of 26 July 2011 (text 
attached to this notification). G/SCM/N/243/CRI 
Page 14  
 
  authorized premises or plants;  to keep a separat e stock control system and accounting records for 
operations carried out under the Regime;  to comp ly with 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 
 Regime benefits apply as from the date of i ssue of the authorization to commence activities 
under the Inward Processing Regime.  Except in the event of the revocation of the Regime by the 
Ministry of Foreign Trade or relinquishment of Regime status by the enterprise covered by the 
Regime, the benefits granted by this Re gime continue for an indefinite term. 
  However, Regime benefits are likewise subj ect to the provisions of Article 27.4 of the 
WTO Agreement on Subsidies and Countervailing Measures and the corresponding extensions 
granted by the WTO in documents G/SCM/39 and WT/L/691.  As indicated in section (a) of the 
Action plan for the elimination of export subsid ies, all of the beneficiaries under the Inward 
Processing Regime have been notified that benefits  under the Regime deemed to be export subsidies 
will remain in effect until 31 December 2015.  9. Trade effects of the subsidy
24 
 At present, there are 86 active enterprises be nefiting under the Inward Processing Regime.  
In 2011, this Regime provided employment for abou t 14,235 people.  Some 211 different products 
were-exported under this Regi me to 45 countries in 2011. 
 
Costa Rica:  Direct jobs created by the Inward Processing Regime 
 
 2009 2010 2011 
Inward processing 8,727 9,991 14,235 
Source: PROCOMER . 
  The main destinations for exports under this  Regime include the United States of America, 
Panama and Nicaragua, which account for 38.7 per cen t, 12.8 per cent and 9.9 per cent, respectively. 
  It should be noted that a considerable proportio n of the firms operating under this Regime are 
located in areas with little urban development a nd accordingly represent a very significant source of 
employment for the area. 
 
Costa Rica:  Total Exports a nd Inward Processing Exports 
in US$ million 
 
 2009 2010 2011 
Inward processing 245.4 178.6 186.3 
Total exports 8,675.6 9,370.8 10,502.04 
Source: PROCOMER 
 
                                                      
24 See footnote 11.  G/SCM/N/243/CRI 
 Page 15 
 
 
  10. Action plan for the elimination of export subsidies 
(a) Notification of beneficiaries 
 
 In accordance with the commitments made in  Decision WT/L/691, Costa Rica notified all the 
beneficiaries under the programme, by means of individual notifications, that no more-export 
subsidies would be granted after the end of calendar year 2015. 
 
(b) Internal procedures 
 
 As part of the National Development Plan (drawn up in 2006), a new strategy for attracting 
investment has been designed in accordance with WTO rules.  In th is respect, taking into account 
paragraph 1(e) of General Counc il Decision WT/L/691, an inter-institutional commission (Ministry of 
Finance Ministry of Foreign Trade PROCOMER) h as been established to assess any measures that 
need to be taken to provide beneficiaries with lega l certainty, fulfil the commitments undertaken and, 
at the same time, encourage higher levels of both domestic and foreign investment.  In 2008 and 2009, 
this commission, in consultation with other aut horities, began the process of drawing up proposed 
amendments to the Duty-Free Zone Law, as indicated in the Action plan for the elimination of export subsidies under the Duty-Free Z one Regime, attached hereto. 
  Having finished its work on the amendmen ts to the Duty-Free Zone Regime, the 
inter-institutional commission has focused its effort s on establishing which provisions of the Inward 
Processing Regime need to be amended.  Once th is process has been completed, the corresponding 
amendments can begin to be prepared and implemented.  
(c) Legislative and regulatory changes 
  The inter institutional commission has prelimin arily identified some of the legislative and 
regulatory changes that will be necessary to amend the Inward Processing Regime.  Possible reforms 
to the Regulations implementing the Inward Pro cessing and Drawback Regimes (Executive Decree 
No. 26285-H-COMEX of 19 August 1997) have also been identified.  These amendments are still 
subject to internal review. G/SCM/N/243/CRI 
Page 16  
 
  Amendments to the Regulations Implem enting the Duty-Free Zone Regime Law 
 
No. 36725-COMEX-H 
 
THE PRESIDENT OF THE REPUBLIC, 
 
THE MINISTER OF FOREIGN TRADE AND 
 
THE MINISTER OF FINANCE 
 
 In exercise of the authority and powers conf erred on them by Article  140(3), (18) and (20) 
and Article 146 of the Political Constitution;  and pur suant to Articles 25(1), 27(1), and 28.2(b) of the 
General Public Administration Law, No. 6227 of 2 May 1978;  Article 2(g) (h) 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;  the Duty-Free Zone Regime Law, Law 
No. 7210 of 23 November 1990;  Articles 5, 6,  50, 175 and 176 of the General Customs Law 
No. 7557 of 20 October 1995;  and Articles 163 to 166 of the Regulations implementing the General 
Customs Law;  and  
Whereas : 
 
I. The Duty-Free Zone Regime is a necessary tool for competing to attract investment inasmuch 
as it offers a series of benefits and fiscal incentives that affect decisions by enterprises wishing to set 
up in Costa Rica.  II. The increase in foreign trade operations is one of the factors of development of our country, 
inasmuch as such operations encourage export gr owth, benefiting living conditions thanks to the 
creation of new sources of employment, for which reason it is necessary to streamline procedures, determine time-limits for response and define the responsibilities of the various institutions involved 
in this Regime, and also to strengthen efficien t and effective controls over their operations. 
 III. For the aforementioned reasons, it is necessar y to make the amendments proposed below to 
the Regulations implementing the Duty-Free Zone Regime Law, Executive Decree 
No. 34739-COMEX-H of 29 August 2008, published in Insert No. 35 of the Official Journal 
La Gaceta  No. 181 of 19 September 2008. 
 
THEREFORE DECREE: 
 
Amendments to Articles 4, 7, 8, 19, 23, 25, 39, 40, 50, 52, 53  bis, 53 quater , 67, 75, 110, 124, 
127, 128, 129, 130, 131, 133 and 145 of the Regulations implementing the Duty-Free Zone 
Regime Law, Executive Decree No. 34739-COMEX-H of 29 August 2008, and the 
Addition of new Articles 10  bis, 23 bis, 23 ter, 23 quater , 127  bis, 127 ter, 
127 quater , 127 quinquies, 127 sexies, 130  bis, 130 ter and 130 quater  
 
Article 1 .  Article 4 of Executive Decree No. 34739- COMEX-H of 29 August 2008, published in 
Insert No. 35 of the Official Journal La Gaceta  No. 181 of 19 September 2008, entitled Regulations 
implementing the Duty-Free Regime Zone Law, is  hereby amended to add the following definitions, 
in alphabetical order: 
 
"BCCR :  Central Bank of Costa Rica." 
  G/SCM/N/243/CRI 
 Page 17 
 
 
  "Manager :  Any public or private natural or legal person responsible for the total or partial 
management of waste and authorized in accordan ce with the provisions in the Law on Integral 
Waste Management, Law No. 8839."  "Recycling :  Processing of waste by means of various treatment processes that restore its 
economic and energy value and so avoid final di sposal, provided that this involves a saving in 
energy and raw materials and is not harmful to health or the environment."  "Reuse :  The action of reusing goods  or products.  The user may use them following action 
taken to improve or restore them." 
 
Article 2.  Articles 7, 8, 19, 23, 25, 39, 40, 50, 52, 53 bis, 53 quater , 67, 75, 110, 124, 127, 128, 129, 
130, 131, 133 and 145 of Executive Decree No. 34739 COMEX H of 29 August 2008, published in Insert No. 35 of the Official Journal La Gaceta  No. 181 of 19 September 2008, entitled Regulations 
implementing the Duty-Free Zone Regime Law,  are hereby amended to read as follows: 
 
"Article 7.  Time-limit for carrying out initial investment .  Initial investment means 
investment carried out within the time-frame est ablished in the relevant resolution granting 
Regime status.  This period shall be set in accordance with the nature and characteristics of 
each project and may never exceed three years as from the date of notification of the resolution granting Regime status.  In sp ecial cases, prior to the expiry of the 
three-year period the beneficiary enterprise ma y request PROCOMER to extend the period for 
carrying out initial investment.  The request shall be duly substantiated and PROCOMER 
shall transmit it to COMEX with a recommenda tion for the purpose of a final decision.  
The extension may not exceed one year.  
The minimum initial new investment in fixed asset s requirement shall be  independent of the 
total investment obligation undertaken by th e beneficiary enterprise, as set down in the 
resolution granting Regime status, although the minimum initial new investment amount shall 
be regarded as part of the total investme nt amount to which the enterprise commits. 
 Assets acquired prior to the filing date of the a pplication to join the Duty-Free Zone Regime 
and used assets acquired in the country shall be considered part of the total investment amount 
and not part of the initial new invest ment undertaken by the enterprise." 
 "Article 8.  Fixed assets .  Fixed assets mean immovable property, and movable property 
subject to depreciation.  In the case of park  management enterprises, both the immovable 
property in trust to be used for administra tion and development purposes and that used in 
operating the business, for which the date and co st of acquisition are duly recorded in the 
accounting records of the Duty-Free Zone Regime  applicant.  For the purposes of determining 
the initial new investment amount, fixed assets shall be valued at historical cost (acquisition 
cost), without prejudice to the application for accounting purposes of the standards and rules governing taxation procedures. 
 
For the assessment of the amounts of the invest ment to be carried out on the basis of the 
annual report on activities, PROCOMER shall use th e exchange rate as at the date Regime 
status was granted, according to the resolution on its granting.  If the investment amount has 
been increased, the exchange rate to be applie d for the increased value shall be that on the 
date of notification of the resolution authorizing the modification. 
 Where the level of investment committed is affected by changes in the United States 
dollar/colon rate when calculated in Costa Ri can currency, the valuation shall be made in 
United States dollars when the benefici ary enterprise so informs PROCOMER." G/SCM/N/243/CRI 
Page 18  
 
   
"Article 19.  Resolution granting status as a Customs Service Auxiliary .  The Directorate 
shall issue the resolution granting status as a Customs Service Auxiliary, taking into account 
the following factors:  
(a) Enterprises located inside a park :  The Directorate shall issue any resolution granting 
status as a Customs Service Auxiliary with in not more than two working days of 
being notified by PROCOMER of granting of the status, duly certified by the latter.  In such cases, the Directorate shall not carry  out a prior inspection of the installations, 
except in the case of logistics services enterprises, when inspection shall be 
conducted in accordance with the rules provi ded in the following paragraph and the 
requirements laid down in Chapter XXIII of these Regulations. 
  Once the enterprise is operating under the Regime, the Customs authority, using its 
statutory powers, may carry out the visits and inspections it considers pertinent and, 
if it finds any failure to comply with the requirements to be met by the installations, 
it shall take the appropriate steps to  establish the penalties for which the 
legislation provides. 
 
(b) Enterprises located outside a park :  In the case of enterprises located outside a park, 
once the file is complete, the Directorate's Registration Department shall request the Customs Control Office to inspect the insta llations, in accordance with Article 80 of 
the Regulations implementing the Genera l Customs Law.  The Customs Control 
Office shall have at most ten working days from the notification of the application to send the corresponding inspection report to the Registration Department.  Once the report has been received and found to be in order, the Directorate shall grant the enterprise the status of Customs Service A uxiliary within at most 15 working days 
of receipt of the file forwarded by PROCOMER.  In any case, the Directorate must 
be in possession of the notification approving the status in order to issue the said resolution. 
  If the plant is not ready for inspection because it is under construction or machinery 
and/or equipment has still to be installed, PROCOMER shall also forward the file to 
the Directorate, in which case the interest ed party shall inform the Registration 
Department in writing of the time from which the inspection of the installations can 
be arranged.  In such cases, subject to a request by the interested party, the Directorate shall grant the Customs Servi ce Auxiliary code so that the applicant 
enterprise may clear the goods needed for the construction of the plant and other infrastructure. 
 
(c) Park management enterprises :  After the file has been received, the Registration 
Department shall request the Customs Cont rol Office to inspect the installations.  
The Customs Control Office shall have at most ten working days from the notification of the application to forward the corresponding inspection report to the Registration Department.  Once the report h as been received and found to be in order, 
the Directorate shall grant the enterprise the status of Customs Service Auxiliary 
within at most 15 working days of receipt  of the file forwarded by PROCOMER.  
In any case, the Directorate must be in possession of the notification approving the 
status in order to issue the said resolution. 
  If the plant is not ready for inspecti on because it is under construction, PROCOMER 
shall also forward the file to the Directorat e, in which case the interested party shall 
inform the Registration Department in writing of the time from which the inspection  G/SCM/N/243/CRI 
 Page 19 
 
 
  of the installations can be arranged.  In  such cases, subject to a request by the 
interested party, the Directorate shall gr ant the Customs Service Auxiliary code so 
that the applicant enterprise may clear the goods needed for the construction of the 
works and other infrastructure. 
 
 This procedure shall be followed when th e area of a park is extended or reduced. 
  When the resolution approving the status of  Customs Service Auxiliary is issued, the 
Directorate shall, at the same time, furnish the computer code required for electronic data transmission. 
 
 The administrative reports on the inspection of the installations and the final resolution on the application for the granting of status as a Customs Service Auxiliary shall be communicated to PROCOMER." 
 
"Article 23.  Electronic data transmission .  PROCOMER and the Directorate may authorize 
certain procedures falling within their competence to be carried out electronically.  To this 
end, the beneficiaries shall meet all the requi rements for authorization and the obligations 
imposed by the legal customs regime as a Cu stoms Service Auxiliary, particularly those 
concerning the electronic transmission of cust oms declarations, supporting information and 
the correct use of security codes, access keys or  digital signatures.  For this purpose, the 
beneficiary shall meet the requirements laid  down by PROCOMER and the Directorate for 
using the computer systems. 
 
 In such cases, the code or the confiden tial access or security key assigned to an 
enterprise shall be equivalent, for all lega l purposes, to the signature of the legal 
representative or authorized person." 
 "Article 25.  Minimum infrastructure for a park with processing or mixed enterprises .  
The minimum infrastructure facilities allowing au thorization as a Duty-Free Zone park shall 
be those with capacity for the installation of at least 12 enterprises operating under the Regime, or with a total area of at least ten t housand square metres available for building, to be 
used for installing enterprises under the Regime , whether solely export-processing enterprises 
or in conjunction with enterprises in other ca tegories listed under Article 17 of Law No. 7210 
and amendments thereto, subject to veri fication to the satisfaction of PROCOMER. 
  In the situations referred to in Article 22 of these Regulations, for the purposes of the 
preceding paragraph, the consortium enterprises shall be regarded as a single enterprise." 
 "Article 39.  Forms of cancellation of approval .  After the Directorate has received the 
documentation containing the findings of the insp ection, it shall examine the application for 
cancellation of approval of the area, in accordance with the following criteria: 
 
(a) Closure of one of the enterprise's facilities :  An application to close one of the 
facilities shall be considered if the enterprise intends to relinquish one of its facilities 
but continue operating others under the Regime.  In such cases, the Directorate, following the procedure laid down in this Ch apter, shall cancel the respective location 
code.  If the enterprise has two or more installations within the same park, the 
foregoing procedure shall not apply when a pproval for one of these installations is 
cancelled. 
If the areas for which cancellation of appr oval is being requested have been built 
using any form of statutory tax concession provided by Law No. 7210 for Regime G/SCM/N/243/CRI 
Page 20  
 
  beneficiary enterprises, the applicant ente rprise shall proceed to refund the taxes 
corresponding to those concessions, as determ ined by the Ministry of Finance, 
provided that the said installations have been excluded from the Regime. 
 For the purposes of the corresponding calculation, the beneficiary enterprise 
shall submit to the Ministry an expert 's report by a professional person or body 
accredited by the Federated College of Engineers and Architects of Costa Rica (Colegio Federado de Ingenieros y Arquitectos de Costa Rica ), indicating the amount 
and value and giving a separate description of all the materials used in order to determine the corresponding taxes.  The a pplication for cancellation of approval shall 
not become effective until such taxes have been refunded. 
 
(b) Reduction of the enterprise's area :  An application for reduction of an area shall be 
considered if the enterprise intends to reduce the size of one of its facilities.  In such 
cases, it shall retain the code granted for the location whose area is to be reduced. 
(c) Transfer of installations :  In the case of transfer of installations, the approval 
procedure for areas within and outside the park shall apply. 
 The Directorate shall issue the resolution au thorizing the transfer and a location code 
shall be assigned for the installations to be appr oved;  the location code for the facilities to be 
closed shall remain in effect.  This situation sh all last for one month, the period given to the 
beneficiary enterprise to complete the transfer of all its assets to the new location, under the 
supervision of the customs responsib le for the respective installations. 
  At the end of this period, the location c ode for the installations closed shall be 
terminated and the installations shall be subj ect to inspection by the Customs Control Office 
within a period of not more than ten working days. 
 
 The aforementioned period of one month ma y be extended for another month prior to 
its expiry, once only, at the request of the beneficiary enterprise."  "Article 40.  Payment of taxes .  If the areas for which cancellation of approval is being 
requested have been built using any form of statutory tax concession provided by Law 
No. 7210 for Regime beneficiary enterprises, the applicant enterprise shall proceed to refund 
the taxes corresponding to those concessions, as determined by the Ministry of Finance, 
provided that the said installations have been excluded from the Regime.  For the purposes of the corresponding calculation, the beneficiary enterprise shall submit to the Ministry an expert's report by a professional person or body accredited by the Federated College of 
Engineers and Architects of Costa Rica ( Colegio Federado de Ingenieros y Arquitectos de 
Costa Rica ), indicating the amount and value and giving a separate description of all the 
materials in order to determin e the corresponding taxes.  The application for cancellation of 
approval shall not become effective un til such taxes have been refunded. 
  If the enterprise put up the building to be closed without making use of tax 
concessions, it shall submit the application fo r cancellation of approval accompanied by a 
certificate from a certified public accountant substa ntiating the situation on the basis of the 
invoices and/or customs declarations and any othe r relevant documentation.  The certificate to 
be issued may not be based on selective proof  in such a manner that all the relevant 
documentation has to be examined and revised .  COMEX shall forward a copy of the said 
certificate to the Directorate's Taxation Department and to the DGT so that the controls and 
revisions deemed relevant can be made.  Th e resolution by which approval for the area is  G/SCM/N/243/CRI 
 Page 21 
 
 
  cancelled shall be issued without prejudice to the inspection that may be conducted by the 
Ministry of Finance.   If the property is transferred to another Regime beneficiary enterprise, the enterprise receiving the property shall make the relevant customs declaration for inward clearance." 
 
"Article 50.  Authorization of warehouses .  For approval and cancellation of approval of 
warehouses, the beneficiary shall comply with the procedure laid down in Chapters VI and 
VII of these Regulations.  
 Warehouses shall be authorized both within and outside a park and in any event shall 
have a security system equipped with video cameras that may be viewed by the customs authority at any time.  Customs control sha ll be carried out by the customs office with 
jurisdiction for the location of the warehouse.  
 Inward clearance into national customs te rritory, import and export under the Regime 
may be carried out from such warehouses provide d that they are suitable for the reception, 
inspection and clearance of goods in conformity with the customs legislation in force, subject to authorization by the customs authority.   For movements of goods between the prin cipal plant and the authorized warehouse, 
the appropriate Transit Customs Declaration shall be used;  this shall not be required if both 
are located within the same park.  The foregoi ng shall be without prejudice to the proper 
internal monitoring and stock control records wh ich the beneficiary shall undertake to keep so 
as to enable satisfactory control.  
 The warehouses' areas and installations shall be properly defined and separated from 
those that are not authorized un der the Duty-Free Zone Regime." 
 
"Article 52.  Modification of the terms of resolutions granting Regime status .  Any change 
in the conditions or activities of a Regime bene ficiary enterprise, envisaged in Law No. 7210, 
that requires modification of the terms of th e resolution granting Regime status, with the 
exception of those cases provided in these Regulations directly authorized by PROCOMER, 
shall be subject to prior authorization from th e Executive.  The enterprise in question shall 
submit an application to this effect to PROCOMER, accompanied by the information and documentation on which the application is based. 
 
 PROCOMER shall authorize applications th at refer to the aspects below directly 
without the need for prior approval by the Executive: 
 
(a) Date of commencement of production activities. 
(b) Date of compliance with the initial new investment requirement. 
(c) Date of compliance with the total investment requirement. 
(d) Date of compliance with the employment positions requirement. 
(e) Change in trading name or change in the company's situation in the terms laid 
down in the Commercial Code. 
(f) Transfer of the location of the installations. 
(g) Authorization for warehouses w ithin or outside the park. G/SCM/N/243/CRI 
Page 22  
 
   PROCOMER shall process such applications according to the procedures set down in 
Chapters III, VI and VII of these Regulations, as applicable.   Modification of the terms of the resolution granting Regime status shall take effect on the date on which the corresponding authorization is notified to the beneficiary enterprise.  
For all purposes, the aspects modifying the r esolution granting Regime status shall be 
automatically incorporated into the operations contract without the need to draw up an addendum."  "Article 53 bis.  Payment of taxes to the Ministry of Finance .  The beneficiary enterprise 
shall submit to the Customs Control Office a copy of the certificate from a certified public 
accountant containing a detailed inventory of the goods that have been entered under the 
Regime.  The Customs Control Office shall immedi ately inform the Directorate so that it may 
cancel authorization for the entry of goods by the beneficiary enterprise. 
 
 On the basis of the certificate mentioned in  the previous paragraph, the beneficiary 
enterprise shall identify the goods that will be  transferred, re-exported or definitively 
imported.  If there are goods re-exported or de finitively imported, after having drawn up the 
inventory, it shall provide the documents in support of such operations, where applicable. 
  The Customs Control Office shall undertake a physical inspection of the inventory of 
goods supplied by the beneficiary enterprise within not more than ten working days of the 
date of receipt of the complete information.   For all purposes, the date of cessation of 
operations shall mean the time at whic h the Customs Control Office undertook the 
aforementioned inspection and issued the corr esponding report.  Following completion of the 
foregoing, the beneficiary enterprise shall co mplete the relevant customs declarations 
according to the destination of the goods within 15 working days of the issue of the inspection 
report by the Customs Control Office and sh all inform the latter of the operations. 
  Likewise, the Customs Control Office sha ll certify that the beneficiary enterprise 
relinquishing its status has no pending tax/customs obligations, that the aforementioned inventory has been drawn up and that the inst allations have been duly inspected.  Within 
five working days, it shall forward the said certificate to PROCOMER, with copies to the 
Directorate and the beneficiary enterprise.   If the infrastructure or buildings owned by the beneficiary enterprise for which 
exclusion from the Regime is being requested ha ve been built using any form of statutory tax 
concession provided by Law No. 7210, the applican t enterprise shall proceed to refund the 
taxes corresponding to those concessions, as determined by the Ministry of Finance, provided that these installations have been exclude d from the Regime.  For the purposes of the 
corresponding calculation, the beneficiary enterpri se shall submit to the Ministry an expert's 
report by a professional person or body accredited by the Federated College of Engineers and 
Architects of Costa Rica ( Colegio Federado de Ingenieros y Arquitectos de Costa Rica ), 
indicating the amount and value and giving a separate description of all the materials used in 
order to determine the corresponding taxes.  The Ministry of Finance shall verify payment of 
the relevant taxes within ten working days.  It shall also transmit a certificate stating the 
situation to PROCOMER, with copies to the bene ficiary, the Custom Control Office and the 
Directorate within two working days of the da te of verification of the relevant payment. 
 
 If the area to be excluded was built without making use of tax concessions, the certificate from the certified public accountant sh all state the situation based on the invoices 
and/or customs declarations and any other relevant documentation. 
  G/SCM/N/243/CRI 
 Page 23 
 
 
   If the property is transferred to another Regime beneficiary enterprise, the enterprise 
receiving the property shall make the relevant customs declaration for inward clearance." 
 "Article 53 quater .  Relinquishment procedure at PROCOMER .  After PROCOMER has 
received the certificate issued by the Ministry  of Finance, referred to in Article 53 bis above, 
and compliance with the requirements set out in  the preceding Article have been verified, 
PROCOMER shall send a report to the Minister of Foreign Trade on the admissibility of the relinquishment request.  This report shall be fo rwarded to the Executive so that it may adopt 
the appropriate resolution on the relinquishment application submitted.  
 As of acceptance of the relinquishment a pplication by the Board of Directors or 
competent entity of PROCOMER, all charges fo r the fees for using the Regime shall be 
cancelled and all the Regime's benefits shall be  suspended for the enterprise in question.  
PROCOMER shall inform the Directorate and th e Customs Control Office of the decision for 
appropriate action.  After the Executive resoluti on has been published in the Official Journal 
La Gaceta , all the benefits of the Regime shall become null and void and PROCOMER shall 
return the guarantee deposit to the benefici ary, less any outstanding amounts payable. 
  Following notification of the Executive resolution approving the renunciation, 
PROCOMER shall notify the decision to the Di rectorate and to the Customs Control Office 
for appropriate action. 
 
 Following receipt of the Executive resolution on relinquishment and its notification to the beneficiary enterprise, the Directorate shall issue a decision revoking the relinquishing 
enterprise's status as a Customs Service Auxiliary, without prejudice to the Customs 
Authority's power to initiate administrative proceedings subsequently as a result of the 
liability incurred by the enterprise's activities as a Customs Service Auxiliary." 
 "Article 67.  Annual report on activities .  Within four months following the end of the 
normal financial year, or a non-standard financial year as authorized by the Ministry of Finance for a specific enterprise, beneficiari es shall provide PROCOMER with an annual 
report on their activities during the financial year that has just ended, containing and 
providing the information specified in the forms drawn up for this purpose by PROCOMER 
and duly published in the Official Journal La Gaceta . 
  If the report is not submitted or is s ubmitted in an incomplete form, PROCOMER 
shall give the beneficiary enterprise a period of 15 (fifteen) working days, calculated from the 
working day following the notification to this effect, in which to submit the annual report, 
rectify any mistakes or submit the missing document s, whichever applies.  If the report is not 
submitted or the mistakes are not rectified or the missing documents not  submitted during the 
aforementioned period, PROCOMER shall issue a final warning, giving ten working days 
calculated from the date of the notification in which to comply.  
 If the report is not submitted within the tim e-limit prescribed in the first and second 
paragraphs of this Article, or if it is found that the report has been submitted with substantive 
errors or omissions and these are not remedied within the time-limit specified by PROCOMER in accordance with the second para graph of this Article, PROCOMER shall 
temporarily suspend the enterprise in breach from performance of any authorized actions 
regarding activities covered by the Regime, and on the same day that the relevant official 
letter is sent shall notify the Directorate-Genera l of Customs, the Customs Control Office, the 
Directorate-General of Finance and the mana gement of the industrial park where the 
enterprise is located, to ensure the concomit ant suspension of all Regime transactions and G/SCM/N/243/CRI 
Page 24  
 
  benefits, such as the transit or movement of ma terials and merchandise, exemptions and other 
operations under the Regime.   The foregoing shall be without prejudice to  any penalties that may become applicable 
pursuant to the Law, and on the basis of a substantiated recommendation forwarded to 
COMEX by PROCOMER. 
  PROCOMER shall give the BCCR electronic access to the information contained in the annual report on activities for the purpo se of compiling the relevant statistics." 
 
"Article 75.  Purchases in the local market .  Pursuant to the provis ions of Law No. 7210 and 
amendments thereto, authority is hereby gi ven for an exemption from payment of General 
Sales Tax and Selective Consumption Tax on local purchases made by Regime beneficiaries in the following cases:  
(a) Local purchases of materials and merchandi se referred to in Article 4 of these 
Regulations. 
(b) Purchases of the use of public and private services required for: 
1. The generation of operating, production, administrative and transport capacity. 
2. Staff training or associated purposes, i.e. transport, accommodation, meals. 3. The cost of transport and accommod ation incurred by the enterprise and 
connected with the activities authorized  by the Executive Resolution granting 
Regime status. 
4. Meals services contracted by the beneficiary enterprise.  If the beneficiary 
enterprise gives employees a partial subs idy for meals, the exemption shall only 
apply to the part of the service paid by  the beneficiary enterprise.  For the 
non-subsidized part, the employee shall pay the taxes due to the supplier 
enterprise at the time of purchase.  The beneficiary enterprise shall carry out the 
controls required by the Directorate-Ge neral of Taxation to ensure strict 
compliance with the provisions in this subparagraph. 
(c) In exceptional cases, any other items as sp ecified by the Ministry of Finance in a 
substantiated resolution." 
"Article 110.  Containers, packaging and wrapping, residue or waste of goods, computer 
and electronic equipment, and other waste or residue resulting from activitie s.  
Beneficiaries may at any time recycle residue or waste of goods, computer and electronic 
equipment, residue of containers, packaging and wrapping used in the production process, as 
well as any other residue or waste resulting fro m their activities.  The aforesaid residue or 
waste shall be exempt from payment of any import duty or internal tax provided that they are 
intended for recycling.   Beneficiary enterprises carrying out such procedures shall do so through enterprises 
or managers authorized by the Ministry of Hea lth in accordance with the regulations in force.  
The beneficiary enterprise shall provide th e Customs Control Office with proof of 
this situation. 
  G/SCM/N/243/CRI 
 Page 25 
 
 
   The beneficiary shall transmit the recycling application to the Customs Control Office 
electronically, together with information on the goods it is intended to recycle. 
  All recycling shall be the subject of a report showing the recycling and the approved 
receipt from the enterprise carrying out the pr ocedure and participation by the Customs 
authority when this has occurred within the peri od determined by the Customs Control Office.  
A copy of the report shall be forwarded to the Customs Control Office within one calendar 
day of completion of the recycling.   Beneficiaries may recycle or dispose of packaging and wrapping used to transport raw 
materials, machinery and equipment acquired unde r the Regime without authorization or the 
presence of the competent authorities.   Likewise, beneficiary enterprises may re-use packaging or wrapping materials and containers, and residue or waste of goods, co mputer and electronic equipment or other 
residues or waste resulting from their activities, which shall be exempt from all taxes in 
accordance with Article 20 of the Law."  "Article 124.  Activities by beneficiaries .  Beneficiaries under any of the categories specified 
in Article 17 of the Law may, under the Re gime's incentives, engage in the following 
activities: 
 
(a) Lease or sublease independent buildings  or industrial facilities to other 
Duty-Free Zone enterprises. 
(b) Lease or sublease areas in accordance w ith the terms specified in Article 20 
of these Regulations. 
(c) Engage in innovation, research  and development activities. 
(d) Provide training to their employees in any of the enterprise's spheres of 
activity. 
(e) Provide training to employees of suppliers, officials of public bodies or 
students in the Costa Rican educational system, in any of the enterprise's 
spheres of activity. 
(f) The enterprises described in Article 17(d) of the Law may engage in 
promotion and/or sponsorship activities related to the activity authorized under the Regime. 
(g) Carry out any of the activities described in subparagraphs (a), (b) and (c) of 
Article 18 of the Law." 
"Article 127.  Activities related to logistics services .  Enterprises which meet the 
requirements determined in the Law for acceptance by the Regime and the specific requirements in this Chapter may engage in activities for the purpose of providing integrated 
logistics services, which may consist of planni ng, control and managing of stock, selection, 
packaging, wrapping, bulk breaking, invoicing, labelling or other activities provided that they 
do not transform the nature of the goods and do not consist simply of storage and/or 
safekeeping.  Details of the activities shall be  listed in the Executive resolution granting 
Regime status."  G/SCM/N/243/CRI 
Page 26  
 
  "Article 128.  Re-export of goods by logi stics services enterprises .  For the purposes of the 
exit of goods cleared into the Regime by logistics services enterprises, the following 
documents shall be submitted together with the customs re-export declaration: 
 
  (a) Original commercial invoice for the goods. 
 
  (b) Bill of lading, air waybill or consignment note, as appropriate.    (c) Packing list."  
"Article 129.  Inward clearance of goods by logistics services enterpris es into Duty-Free 
or Inward Processing Regime Zones .  Where a logistics services enterprise needs to deliver 
goods cleared under the Regime to another benefi ciary enterprise covered by the Regime or 
to enterprises under the Inward Processing Re gime, the latter shall complete the Customs 
Declaration of Inward Clearance into th e Regime, following the customs procedure 
determined for this purpose. 
  The time-limit determined in Article 20(b) of the Law on the Duty-Free Zone Regime shall be calculated as of the acceptance of the second customs declaration indicated in the paragraph above."  
"Article 130.  Definitive import of goods cleared by logistics services enterprises .  Where a 
logistics services enterprise needs to deliver goods cleared to a natural or legal person that is 
not a beneficiary of the Regime, the latter shall complete the Customs Declaration of Definitive Import, following the customs proce dure determined for this purpose, subject to 
compliance with the non-tariff requirements applic able to the goods, and the items for freight 
and insurance and other costs comprising the customs value.  Where relevant, the tariff 
benefits provided in international tr ade agreements shall also apply. 
  Definitive imports of goods from Duty-Free Zones by a third party from a logistics 
services enterprise shall not be considered dom estic sales for the enterprise providing the 
logistics service.  The cost of the service provided shall be taken into account for calculating 
the percentage of domestic sales authorized for this enterprise. 
  Imported goods may be cleared at the inst allations of the enterprise benefiting from 
the logistic services.  
 The enterprise may not keep in its installa tions goods authorized for release for more 
than three working days as of the authorization.  After this period, the goods shall be withdrawn by the importer or transf erred to a General Deposit Warehouse. 
  For the purpose of the taxes due, the logisti cs services enterprise shall issue an invoice 
for the logistics services provided." 
 
"Article 131.  Admission requirements for processing enterprises in category (f) .  
Enterprises wishing to be admitted to the Duty -Free Zone Regime as processing enterprises in 
the category provided in Article 17(f) of the La w shall submit an application to PROCOMER 
on the form drawn up for this purpose, and the provisions in Chapter III of these Regulations 
shall apply.  They shall also comply with the requirements listed below: 
 I. Belong to a strategic sector or be situated outside the GAMA .  Enterprises seeking 
admission to the Regime in this category shall carry out a new project in a sector  G/SCM/N/243/CRI 
 Page 27 
 
 
  deemed to be strategic according to the terms of Article 21  bis of the Law and the 
corresponding Regulations or shall be situated outside the GAMA. 
  For these purposes, in its application for ad mission to the Regime, the enterprise shall 
explain which of the parameters define d by the Commission on Strategic Sectors 
apply to its activities and the products to  be developed in accordance with this 
parameter, and shall provide the technical documents it deems necessary for the corresponding accreditation. 
 II. New investment .  Enterprises seeking admission to the Regime in this category shall 
make new investment under the Regime, pursuant to Article 1 of the Law and 
Articles 134 and 135 of these Regulations. 
 III. Transfer of the investment .  Enterprises seeking admission to the Regime in this 
category shall prove that the nature and speci al features of the ne w investment to be 
made under the Regime may be transferred or made in another country.  For these 
purposes, the enterprise shall prove th at a provision in subparagraph (a) or 
subparagraph (b) below has been met: 
 
  (a) It is a new project that could be carried out in or transferred to another 
country.  To prove compliance with this requirement, the applicant shall 
submit a feasibility study conducted by  a competent expert or a sworn 
statement issued by the legal representa tive of the enterprise registered in 
Costa Rica or a document issued by th e competent public authority in the 
corresponding country indicating the reasons for which the project could be implemented in or transferred to  another country.  These documents 
shall indicate the country or countries in which this new project could 
be implemented. 
   (b) The controlling entity of the enterprise seeking admission to the Regime 
operates abroad, outside Central America and Panama, at least one processing plant similar to the plant it will operate in Costa Rica. 
 
  Proof of compliance with the requireme nt indicated in this subparagraph shall 
require the submission of the following documentation: 
 
1. Sworn statements issued by the legal representative of the controlling 
entity, the legal representative of the enterprise seeking admission to 
the Regime and the legal representative of the enterprise operating a similar plant abroad, declaring the following: 
(i) The controlling entity has a similar plant abroad, outside 
Central America and Panama, toge ther with the exact location 
of the plant. 
(ii) A description of the activities of the similar processing plant 
abroad, outside Central America and Panama, as well as how it is operating. 
(iii) The controlling entity owns or has a majority shareholding in 
the enterprise seeking admission to the Regime or has 
executive authority over the aforesaid enterprise and over the 
enterprise with the pl ant located abroad. G/SCM/N/243/CRI 
Page 28  
 
  2. Document issued by the competent authority or body in the country of 
origin indicating the following: 
(i) The legal status or equivale nt document showing the legal 
existence of the controlling entity. 
(ii) The legal status or equivale nt document showing the legal 
existence of the entity operating the similar processing plant 
abroad, outside Central America and Panama. 
(iii) Permit, business licence or equivalent document authorizing 
the operation of the similar processing plant abroad, outside Central America and Panama. 
In all the aforementioned cases, th e documents issued abroad shall 
be submitted duly certified by th e consulate and written in the 
Spanish language;  if they have been issued in another language, 
a faithful translation of the text into  Spanish by an official translator 
authorized by the Costa Rican Ministry of Foreign Relations and 
Worship shall be attached.  Likewise, sworn statements shall be issued 
by the legal representative of the entity making the declaration and shall be duly authenticated. 
 IV. Total or partial exemption from income tax or not subject to income tax in 
Costa Rica.   Enterprises seeking admission to the Regime under this category shall 
be totally or partly exempt from income tax or not subject to income tax. 
 
 For these purposes, enterprises operating in  Costa Rica shall submit an attestation 
issued by the Tax Administration showing that they are exempt from, or not subject to, income tax, pursuant to the terms laid down in Article 3 of the Income Tax Law.  
If the enterprises are not engaged in any profit making activities in Costa Rica subject 
to income tax, they shall submit a sworn st atement issued by their legal representative 
attesting to this situation. 
  Compliance with this requirement shall not be required, and accordingly, admission to 
the Regime shall not be permitted, if the project or activities carried out by a legal 
person applying for the Regime are the resu lt of the acquisition or takeover, in any 
form, of a legal person that was subject to pa yment of income tax in Costa Rica or of 
its principal assets.  If such an acquisition or  takeover occurs after the applicant has 
been admitted to the Regime, the percentage  of exemption from taxes on the import of 
machinery, equipment and raw materials a nd profits tax shall be reduced accordingly 
pro rata  to the assets acquired as a percentage of the enterprise's total assets. 
  The enterprise shall prove compliance with this requirement by means of a sworn 
statement made at the time of application for admission to the Regime and the information shall be updated annually by mean s of a sworn statement attached to the 
annual report on activities.  PROCOMER sha ll forward the said statement to the 
Ministry of Finance so that the latter may draw the conclusions it considers 
appropriate." 
 "Article 133.  Admission requirements for enterprises classified as Megaprojects .  
Enterprises seeking admission to the Regime in the category provided in Article 17(f) of the 
Law and granting of the incentives provided in subparagraph (e) of Article 21 ter of the Law  G/SCM/N/243/CRI 
 Page 29 
 
 
  shall submit an application to PROCOMER on th e form drawn up for this purpose, and the 
provisions in Chapter III of these Regulations shall apply.   The aforesaid enterprises shall also comply  with the requirements listed below: 
 
  (a) The requirements laid down in Article 131 of these Regulations. 
   (b) Submit an investment plan to be implemented over a period of eight years, 
showing that new investment of at least ten million dollars, the legal currency of the United States of America (US$10 million) or its equivalent in national 
currency will be made, calculated on the basis of the book value of new 
assets subject to depreciation. 
   (c) Maintain at least one hundred permanent jobs as of commencement of 
production and throughout the durati on of the production activities of the 
beneficiary enterprise covered by the Regime, duly recorded on the payroll 
with the Costa Rican Social Security Fund. 
   (d) For the purposes of controlling the amount of the investment, on the basis of 
the annual report on activities, PROCOMER shall use the book value for the corresponding financial year.  Depreciati on shall be calculated as of the date 
of commencement of production covered by the Regime according to the 
methods and percentages of depreciation determined in the Income Tax Law. 
 
 Such enterprises shall also make and maintain minimum and total investment, 
pursuant to the terms laid down in Artic les 5, 7 and 135 of these Regulations." 
 
"Article 145.  Transfer to the category provided in Article 17(f) of the Law .  Beneficiary 
enterprises indicated in Article 17(a) of the Law may request transfer to the category indicated 
in Article 17(f) of the Law, provided th at they meet the following criteria: 
 
(a) The project is to be carried out in a strategic sector, as provided in the 
Regulations of the Special Commission on the Definition of Strategic 
Sectors, or the enterprise sets up outside the GAMA. 
(b) At the time of requesting the change of category, the beneficiary enterprise 
was up to date with its obligations under the Regime. 
(c) The enterprise undertakes to make new investment in fixed assets in 
accordance with the terms laid down in the Law. 
(d) The enterprise is totally or partly exempt from, or is not subject to, income 
tax, according to the terms laid down in Article 3 of the Income Tax Law. 
 Enterprises which transfer categories shall have a maximum period of three years 
in which to make the new initial investme nt and initiate production activities under the 
new Regime." 
 
Article 3.  The following new Articles 10  bis, 23 bis, 23 ter, 23 quater , 127  bis, 127 ter, 
127 quater , 127 quinquies , 127 sexies , 130  bis, 130 ter and 130 quater  are hereby added to 
Executive Decree No. 34739-COMEX-H of 29 August 2008, published in Insert No. 35 to the Official Journal La Gaceta  No. 181 of 19 September 2008, entitled Regulations implementing 
the Duty-Free Zone Regime Law: G/SCM/N/243/CRI 
Page 30  
 
   
"Article 10  bis.  Possibility of verifying requi rements by electronic media .  All the 
requirements may be verified by government  authorities using any electronic media.  
The foregoing, in guarantee of the Principle of Inter-institutional Coordination and pursuant to Articles 8 and 9 of Law No. 822 0 of 4 March 2002 and Articles 3, 6, 11 
and 16 of Executive Decree No. 32565-MEIC of 28 April 2005, Regulations 
implementing the Law on Protecting Citizens from Excessive Administrative Requirements and Formalities."  "Article 23  bis.  Recognition of functional equivalence .  For the various formalities 
covered by these Regulations which require  the submission of physical documents, it 
shall be understood that, if technological me dia so permit, electronic documents may 
replace physical documents. 
  In such cases, any statement of a represen tative or declarative nature, expressed or 
transmitted through an electronic or informatics medium, shall be deemed legally equivalent 
to documents issued, received or transmitted by physical media.   Likewise, in cases where government au thorities decide to implement electronic 
formalities in stages, the physical submissi on of such documents may be replaced by 
electronic submission of the digitized document, without prejudice to verification of the 
original document by the Directorate or by other government bodies involved in the 
corresponding formality within their spheres of competence.  In such cases, enterprises shall 
keep the original physical  documents properly filed." 
 "Article 23 ter.  Permanent electronic address .  Beneficiary enterprises shall designate 
an electronic mail address as their legal domicile for the receipt of notifications relating to 
the formalities.  This information shall be tr ansmitted by means of a specific declaration.  
The enterprise shall be responsible for the security and reliability of the account selected. 
  The indication of the electronic address ma y be changed or cancelled at any time, 
subject to notification to PROCOMER, without  prejudice to the legal consequences that 
occurred up to that moment." 
 "Article 23 quater .  Subsidiary means of notification .  In addition to the permanent 
electronic address, enterprises and entities which conduct electronic formalities with PROCOMER shall indicate a fax number to be used if it proves impossible to send the 
notification via electronic mail, for reasons that cannot be imputed to the enterprise or entity.  
For the purpose of notification using this medi um, five attempts to transmit the fax to the 
number indicated shall be made, at intervals of  no less than thirty minutes.  Three of these 
attempts shall be made on the first day and tw o on the following day;  the latter two attempts 
shall be made on a working day and after eight o'clock.  If none of these attempts are successful, this shall be noted in a single docum ent to this effect for the purposes of the 
automatic notification." 
 "Article 127  bis.  Inward clearance of goods by logistics services enterprises .  In the case 
of enterprises providing logistics serv ices under the Duty-Free Zone Regime, goods 
consigned to them shall enter for the purpo se of providing logistics services and the 
authorized benefits of the Regime and their s ubsequent transfer to third parties or to a 
predefined consignee, within or outside national customs territory. 
  The customs declaration shall be accompanied by the following documents: 
  G/SCM/N/243/CRI 
 Page 31 
 
 
    (a) Bill of lading, air waybill or consignment note, as appropriate. 
   (b) Packing list.    (c) Original commercial invoice issued in the name of the owner of the goods." 
 
"Article 127 ter.  Authorized operations .  Goods entered under the Regime for the purpose 
of providing logistics services may subsequently be cleared by another beneficiary under the 
Duty-Free Zone Regime or the Inward Pr ocessing Regime, or definitively imported or 
re-exported." 
 
"Article 127 quater .  Length of stay of the goods .  Goods entered to be used to provide 
logistics services may not remain for more than one year as of the date of acceptance of the 
customs declaration.  
 At the end of this period if the goods have not been transferred to a destination other 
than the one covered by this Chapter, the cust oms tax due shall be paid within eight working 
days of expiry of the one-year period.  If such  payment is not made, it shall be deemed that 
the goods are not of interest and the provisions  of Article 56(f) of the General Customs Law 
shall apply.  
 If the goods are abandoned in the terms indicated, they shall remain in the 
installations of the logistics enterprise, which shall be responsible for their safekeeping in case 
of any loss or destruction until they are withdrawn by the recipient."  "Article 127 quinquies .  Stay of the goods in a single location .  Goods that have entered the 
installations of the logistics services enterprise may not be moved in any way as long as they 
are covered by the customs declaration that authorized entry under the Regime, except for 
transfer to other authorized locations belongi ng to the same logis tics services enterprise. 
  Goods used to provide logistics services may be transferred to another logistics 
services enterprise subject to authorization by the Customs Control Office, in which case the 
relevant customs declaration shall be made. 
  The length of stay of the goods under the Regime in the new locat ion shall be for the 
remaining time of the one-year period, which shall be calculated as of the date of acceptance of the first customs declaration completed fo r the purpose of entry into this category." 
 
"Article 27 sexies .  Inventories of goods entered .  The beneficiary enterprise shall keep an 
electronic record of inventories and shall forward to the Directorate, at the time of entry or exit of the goods to or from its installations, information concerning the inventory, together 
with any other activity specific to the logisti cs service for which the goods are used, in the 
format to be determined by the Directorate for this purpose. 
 
 The control of inventories shall identif y the goods on which national taxes have not 
been paid and the domestic goods entered for the purpose of providing a logistics service and subsequent re-export."  
"Article 130  bis.  Association of inventories .  All customs declarations indicating the 
installations of logistics services enterprises as th e immediate location shall be associated with 
a movement in the inventory in the terms determined by the Directorate."  G/SCM/N/243/CRI 
Page 32  
 
  "Article 130 ter.  Requirements for installations of  logistics services enterprises .  
Beneficiary enterprises which provide logisti cs services shall possess suitable installations for 
conducting their activities.   The installations, situated within or outside a park, shall meet the minimum 
requirements indicated below: 
 
(a) Definition of the total area to be used for the activity covered by the Regime. 
(b) Area for receiving, storing, stowing, inspecting and dispatching goods. 
(c) Area reserved for physical recognition of the goods. 
(d) Exclusive defined area that enables good s entering under the Duty-Free Zone 
Regime to be distinguished from imported or domestic goods. 
(e) Exclusive defined area that complies with the health and safety regulations 
for goods harmful to human, animal or plant health or the environment. 
(f) Area or office equipped for use by the Customs authority with a connection 
to the customs computer system. 
(g) Security system for safekeeping and surveillance of the goods, including a 
control and surveillance system equipped with video cameras. 
(h) Control system for the entry and exit of persons and vehicles. 
(i) Compliance with the safety requirements and other technical building 
standards. 
 In order to be granted the status of Customs Service Auxiliary, a beneficiary 
enterprise situated within or outside a park shall comply with the requirements indicated, 
which shall be verified in advance by the Customs Control Office.   Installations situated within or outside a park shall also be inspected in the case of 
approval or cancellation of approval of areas." 
 "Article 130 quater .  Obligations of logistics services enterprises .  In addition to the 
obligations determined in the Law, logistics services enterprises shall have the following 
obligations:  
(a) To keep and transmit to the competent Customs authority registers of goods 
entered, stored, withdrawn, abandoned or  the subject of other movements, in 
accordance with the formats and terms determined by the Directorate. 
(b) To make available to the customs au thorities the means for controlling the 
entry, presence and exit of goods. 
(c) To pay the customs taxes due on goods that are not on the premises but have 
been declared as received;  in addi tion, to compensate for any damage 
suffered by goods on their premises or in their custody.  G/SCM/N/243/CRI 
 Page 33 
 
 
  (d) To inform the senior official of the Customs Control Office of the possible 
causes within 24 hours of becoming aware of any damage, loss or other circumstances that affect the goods. 
(e) To comply with the technical and administrative provisions relating to the 
location, storage, warehousing and identification of goods in their custody. 
(f) To possess the security and control measures for technological inventories 
that ensure the effective safekeeping and conservation of the goods to be 
transmitted to the customs in accordance with the requirements laid down by 
the Directorate. 
(g) To verify the validity of the authorization for release of the goods using the 
means specified by the Directorate in a generally applicable reasoned 
resolution." 
Article 4.  These provisions shall take effect as from the date of their publication in the 
Official Journal La Gaceta , except in the case of the amendments to Articles 127, 127  bis, 127 ter, 
127 quater , 127 quinquies , 127 sexies , 128, 129, 130, 130  bis, 130 ter, 130 quater , which shall enter 
into force two months after their publication in the Official Journal La Gaceta . 
 
Given at the Presidency of the Republic, San José, on the twenty-sixth day of the month of July in the year two thousand and eleven. G/SCM/N/243/CRI 
Page 34  
 
  Amendments to the Regulations Implem enting the Inward Processing Regime 
 
No. 36514-COMEX-H  
 
THE PRESIDENT OF THE REPUBLIC, 
 
THE MINISTER OF FOREIGN TRADE AND 
 
THE MINISTER OF FINANCE, 
 
 In exercise of the authority and powers conferred on them by Articles 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;  the Law Establishing the Ministry of 
Foreign Trade and the Foreign Trade Promotion Agen cy of Costa Rica, No. 7638 of 30 October 1996;  
and Articles 179 to 186 of the General Cu stoms Law, No. 7557 of 20 October 1995, 
 
Whereas : 
 1. Articles 179 et seq  of the General Customs Law, No. 7557 of 20 October 1996, lay down the 
basic rules for the Inward Processing Regime, delega ting authority to the Executive for the requisite 
Regulations. 
2. Social, technological and economic changes require  permanent adaptation of the legislation in 
force by the State. 
3. The Customs Administration should endeavour to facilitate trade, which implies the 
streamlining and harmonization of trade and cust oms procedures and the ex change of relevant 
information in order to ensure control and veri fication of goods under various customs regimes. 
4. As new technologies are developed at the globa l level, legislative provisions have been 
adopted to encourage and regulate extensive use of  information technology for customs procedures 
and their administration. 
5. The current customs environment requires mode rnization of administrative management and 
information technology, eliminating unnecessary obstacles, duplicate documents, delays and other 
bureaucratic formalities with no value added. 
6. Security mechanisms for international trade n eed to be established at the present time to 
enable customs operations to be conducted safely and to prevent inappropriate practices endangering 
trade transactions and access to international markets. 
7. Following the implementation of the Inward Processing Regime in the TIC@ Computer 
System, users must take the corresponding measur es and comply with the necessary procedural 
guidelines for making use of such technology. 
8. For these reasons, the following amendments are made to the Regulations implementing 
the Inward Processing Regime, Executive Decr ee No. 34165-H-COMEX of 4 December 2007, 
published in the Official Journal La Gaceta  No. 247 of 24 December 2007.  G/SCM/N/243/CRI 
 Page 35 
 
 
  THEREFORE DECREE: 
 
Amendments to Articles 3, 6, 8, 12, 16, 20, 21, 22, 23, 27  bis, 28, 30, 32, 36, 38 
and 39 of the Regulations Implementing the Inward Processing Regime, 
Executive Decree No. 34165-H-COMEX of 4 December 2007, 
and Addition of New Articles 6  bis, 8 bis, 10 bis, 20 bis, 
21 bis, 57, 58, 59, 60 and 61  
 
Article 1.  Articles 3, 6, 8, 12, 16, 20, 21, 23, 27  bis, 28, 30, 32, 36, 38 and 39 of Executive Decree 
No. 34165-H-COMEX of 4 December 2007, published in the Official Journal La Gaceta  of 
24 December 2007, Regulations implementing the Inward Processing Regime, are hereby amended 
as follows:  
"Article 3.  Abbreviations and definitions .  For the purposes of these Regulations, the 
following definitions apply: 
 
Accessories :  Devices or accessories fitted to equipm ent or machinery to assist or enhance 
production operations and used fo r the satisfactory operation of  the machinery or equipment 
in which they are incorporated.  Customs Control Office :  The customs office responsible for monitoring customs transactions 
involving the Auxiliary.  Unless otherwise pr ovided, this shall be understood to mean the 
customs office with territorial  competence in the locality where the customs transaction is 
effected.  Auxiliary :  Customs Service Auxiliary. 
 
Extension of areas :  The increase in the area previously authorized for the Regime 
beneficiary enterprise provided that the new a reas adjoin the previous area.  Adjoining areas 
shall mean those areas that are contiguous or  mutually separated by an easement, public 
highway, a railway or a private road, river, stream or water course, whether or not 
permanent.  In such cases, the location code a ttributed to the beneficiary enterprise shall be 
the same. 
 BCCR :  Central Bank of Costa Rica. 
 Beneficiary :  Natural or legal person granted aut horization to operate under the Inward 
Processing Regime. 
 Warehouse :  Physical installations of the beneficiary intended solely for storing goods 
covered by the Regime and previously authorized by PROCOMER and the Directorate.  CAUCA :  Second Protocol Amending the Cent ral American Uniform Customs Code. 
 
Customs Auxiliary code :  Identification number given by th e Directorate-General of Customs 
when issuing the decision granting status as a Customs Service Auxiliary.  Location code :  Identification number given by the Di rectorate-General of Customs for each 
geographical point in which the beneficiary enterprise has facilities for the purpose of 
carrying out operations in connection with its activities under the Regime;  COMEX :  Ministry of Foreign Trade. 
 G/SCM/N/243/CRI 
Page 36  
 
  Assembly :  Combination of sub-assemblies, parts  or goods, which has a specific function 
within the product.  Freight consolidation process .  The freight consolidation pr ocess consists of the packing, 
wrapping, palletization, marking and labelling of packages, and the loading and 
accommodation of cargo, in goods transportation units for export. 
 Cancellation of approval of areas :  The reduction in the area previously authorized for the 
beneficiary, either because one of its facilities has  been closed altogeth er or because the area 
of one or more facilities has been reduced. 
 
Waste :  Goods remaining from the production process. 
 Directorate :  Directorate-General of Customs. 
 
DUA :  Single Customs Declaration. 
 Packing, wrapping :  Items designed to facilitate th e transport and protec tion of products, 
in containers or otherwise.  Assembly operation :  The act of joining components ( parts, sub-assemblies and assemblies) 
which when combined result in a product w ith characteristics different from its 
component parts.  Containers :  Items designed to contain products of any kind. 
 
Management or Operations Management :  The Operations Management Unit of the Foreign 
Trade Promotion Agency of Costa Rica res ponsible for administering special regimes. 
 Approval of areas :  The increase in the area previously authorized for the beneficiary, either 
because one or more of the previously authori zed facilities has been increased or extended. 
 
Import :  Import of goods from abroad that comp lies with the formalities and the legal, 
regulatory and administrative requirements for us e and final consumption within the national 
customs territory.  Commencement of operations :  Processes of installation, pr oduction, re-export and/or sale 
of the production output  in the domestic market. 
 Inward clearance of goods :  Entry of goods into the Inward Processing Regime by 
beneficiary enterprises.  Entry under th e Regime does not constitute import. 
 Increase in area :  The increase in the area previously authorized for the Regime beneficiary 
enterprise provided that the new areas do not adjoin the previous area.  In such cases, the 
Directorate shall give the new areas a new location code.  Input :  Raw materials, primary forms, includi ng mixtures, prepared or semi-processed, 
semi-processed products, chemical s or other identifiable materials in the quantity and quality 
required for use in the process, even if they are used up or disappear without being 
incorporated into the end product.  Law:  General Customs Law. 
  G/SCM/N/243/CRI 
 Page 37 
 
 
  Procedure manual :  Policies and guidelines issued by th e Directorate-General of Customs 
and the Foreign Trade Promotion Agency of Costa Rica.  Machinery and equipment :  Assets used to process or transform other products or services. 
 
Raw materials :  Goods which are to be incorporat ed in the end product by means of a 
production process.  Wastage :  The proportion by which inputs are dimini shed with respect to the initial quantity 
after undergoing or being used in a production process. 
 
Ministry :  Ministry of Finance. 
 Production module :  The set of operations carried out for the manufacture of a particular 
product, or for the maintenance, repair, fitting, reconstruction or assembly of goods. 
 
Fitting :  The process of joining together parts or goods. 
 Parts :  A manufactured product which does not itself consist of other parts. 
 Principal plant :  Physical installations authorized by the Foreign Trade Promotion Agency of 
Costa Rica and the Directorate-General of Cu stoms for the principal operations of the 
Regime beneficiary.  Secondary plant :  Operational physical installations of the beneficiary authorized by the 
Foreign Trade Promotion Agency of Costa Rica  and the Directorate-General of Customs, 
other than the principal plant. 
 Percentage of wastage :  The proportion by which inputs are diminished with respect to the 
initial quantity after undergoing or being used in a production process. 
 PROCOMER :  Foreign Trade Promotion Agency of Costa Rica. 
 
Intermediate product :  Goods which, having undergone one  of the processes envisaged in 
Article 179 of the General Customs Law, cons titute an input for ano ther enterprise operating 
under the Inward Processing Regime.  
RECAUCA :  Regulations of the Central American Uniform Customs Code. 
 Recycling :  Process of reclamation or re-use of  a product that no longer serves the purpose 
for which it was designed.  Reconstruction :  The act of constructing (or making) a product again. 
 
Direct re-exportation :  Export from national territory of goods produced under the Regime, 
managed by the beneficiary responsible for their entry.  Indirect re-exportation :  Export from national territory of goods produced under the Regime, 
managed by a beneficiary of the same Regime  other than the beneficiary which imported the 
goods.  Regime :  The Inward Processing Regime. 
 G/SCM/N/243/CRI 
Page 38  
 
  Input-output ratio :  Details of the various inputs, containers or packaging used and the 
proportion of each incorporated in each product unit.  Repair :  Remedying deterioration in order to rest ore the satisfactory op eration of the item in 
question. 
 
Spare part :  Part of a mechanism used as a substitu te for another that needs to be replaced, 
without altering the original equipment and/or machinery.  Residue or waste :  The quantity of goods left over from the production process. 
 
Sub-assembly :  The combination of parts resulting fr om their being fitted together, or which 
form part of an assembly.  Byproducts :  Goods produced as ancillary outputs fr om the principal production process. 
 
Residue tolerance :  The tolerance of wastage, maximum percentage of wastage permitted.  
Permitted margin or discrepancy in the quantity or weight of a product entering a production 
module as compared with the input qu antity and weight of raw materials. 
 Sales on the domestic market :  Sales made by enterprises authorized under the 
re-exportation and domestic sale  modality on national customs territory of finished products 
that have undergone one of the processes envis aged in Article 179 of the General Customs 
Law.  Economic relationship :  Legal transactions between two enterprises subject to the Inward 
Processing Regime that generate the transfer of  goods imported under that Regime that have 
undergone a specific process, in accordance with Article 179 of the General Customs Law, so 
that the intermediate product resulting theref rom constitutes an input for the beneficiary 
enterprise to which it is transferred.  The Fo reign Trade Promotion Agency of Costa Rica 
shall verify the existence of an economic rela tionship between enterprises operating under 
this Regime." 
 
"Article 6.  Electronic data transmission .  PROCOMER and the Directorate may authorize 
certain formalities falling within th eir competence to be carried out electronically.  To this 
end, the beneficiaries shall meet all the requi rements for authorization and the obligations 
imposed by the legal customs regime as a Customs Service Auxiliary, particularly those 
concerning the electronic transmission of cust oms declarations, supporting information and 
the correct use of security cod es, access keys or digital signatures.  For this purpose, the 
beneficiary shall meet the requirements laid  down by PROCOMER and the Directorate for 
using the computer systems.  In such cases, the code or the confidential access or security key assigned to an enterprise 
shall be equivalent, for all legal purposes, to  the signature of the legal representative or 
authorized person."  "Article 8.  Application for admission to the Regime and the status of Customs Service 
Auxiliary .  Any enterprise interested in operati ng under the Inward Processing Regime and 
obtaining the status of Customs Service Au xiliary shall make application to PROCOMER on 
the corresponding form.  This form shall contain the following information and be 
accompanied by the following documentation: 
  G/SCM/N/243/CRI 
 Page 39 
 
 
  I. Information common to the application for admission to the Regime and that for the status of 
Customs Service Auxiliary: 
 
(a) Name of applicant. 
(b) Identity document. 
(c) Address or means of notification. 
(d) Address of the installations. 
(e) Ownership of the property:  indicate wheth er the property is owned by the enterprise 
or leased. 
(f) Telephone number, fax and e-mail address. 
(g) Status of the enterprise:  in operation or a project. 
(h) Name of legal representative, identity document and number. 
(i) Description of the activity and the eight-dig it tariff classification of the inputs and 
products. 
(j) Sworn statement indicating that: 
(i) The enterprise is not engaged in the manufacturing or marketing of weapons 
of any kind (whether permitted or prohib ited) or of components, assemblies 
or sub-assemblies used exclusi vely in the defence industry. 
(ii) The enterprise is registered in th e Ministry of Finance's Register of 
Taxpayers. 
(iii) The enterprise is up to date with the payment of all its contributions to the 
Costa Rican Social Security Fund. 
(k) The signature of the applicant or the legal representative of the enterprise on the 
form shall be authenticated by an attorney at law or notary public. 
II. Information required for the gran ting of the Inward Processing Regime: 
 
(a) Products to be manufactured.  Details of the products to be manufactured, 
including the eight-digit tariff classification. 
(b) Products to be sold on the domestic ma rket, where applicable, expressed in the 
eight-digit tariff classification. 
(c) List of the machinery, equipment and s pare parts which will enter under either 
modality. 
(d) Production process by product description, in cluding the input-output ratio in the 
terms laid down in Article 8 bis of these Regulations.  If the Regime beneficiary enterprise decides to produce goods other than those originally authorized and for 
which it did not submit any information to the Operations Management Unit, it shall G/SCM/N/243/CRI 
Page 40  
 
  describe them in the new application, incl uding the eight-digit tariff classification, 
and shall await approval by the Operati ons Management Unit before starting to 
produce the goods.  The Operations Management Unit shall have not more than five working days within which to reach a d ecision and inform the Directorate, using 
the means established.  Inspection bodies may, by means of post facto controls, 
verify that the information supplied is correct. 
III. Information required for the granting of the status of Customs Service Auxiliary: 
 
(a) Name and identity of the staff members w ho will deal directly with the National 
Customs Service. 
(b) Sworn statement showing that the regist ered owner has granted the appropriate 
authorization to operate on the premises in which the activity under the Regime will 
take place. 
(c) The enterprise undertakes to acquire appr opriate software for electronic data 
transmission to the information system  of the National Customs Service. 
(d) Sworn statement, registered with a notary,  attesting to the existence of a place 
suitable for the safekeeping of the documents which, in accordance with its status as 
a Customs Service Auxiliary, it is required to keep. 
IV. Documentation: 
 
(a) Certificate of legal personality issued not more than three months previously, 
unless the National Registry provides for another time-limit. 
(b) Special power of attorney if the application is made by a person other than the legal 
representative, with express mention of the fact that the power of attorney authorizes 
him to submit the application for admission to the Regime and granting of the status of Customs Service Auxiliary. 
(c) Notarized copy of the front and back of th e ID document of the legal representative 
and the staff members who will deal directly with the National Customs Service, or photocopy thereof, in which case the original  identity document must be shown to the 
official receiving the documentation, who w ill note on the photocopy that it was 
compared to the original. 
(d) If the applicant is a natural person, the following shall also be included: 
(i) Notarized copy of the front and back of the ID document of the applicant or 
photocopy thereof, in which case the or iginal identity document must be 
shown to the official receiving the do cumentation, who will note on the 
photocopy that it was compared to the original. 
(ii) Recent certificate (less than 30 calendar days old) issued by the Costa Rican 
Social Security Fund certifying that he does not work for the Costa Rican 
State or its institutions. 
(iii) A certificate from the Offenders' Regi ster (Offence form), not more than 
two months old (to be procured directly  from the entity responsible for labour  G/SCM/N/243/CRI 
 Page 41 
 
 
  matters).  The requirements in subparagraphs (i) and (ii) above may also be 
validated by the competent authorities." 
"Article 12.  Other authorization applications .  Within a period of not more than five working days, 
the Operations Management Unit shall process the ty pes of application listed below directly, without 
any requirement for authorization from COMEX,  except where-exceptional or especially complex 
issues require the involvement of COMEX: 
 
(a) Application for inward clearance of goods. 
(b) Extension to the new types of goods needed for production, with an indication of the 
eight-digit tariff classification, in acco rdance with Articles 15 and 18 of these 
Regulations, as well as changes in the authorized domestic sales percentage. 
(c) Extension to new products to  be manufactured and re-exported, with an indication of 
the eight-digit tariff classification.  Th e application relating to this authorization 
shall include any additional machinery, equi pment or spare parts to be used in 
making the new products. 
(d) Changes in the percentages of wastage and residue or the residue tolerance of goods 
entered under the Regime. 
(e) Application for the transfer of installati ons, approval and cancellation of approval 
for secondary plants or warehouses, wheth er for their increase or extension.  
These installations shall be approved by th e Directorate before they can be operated. 
(f) Application for readjustment of the financial year. 
(g) Application for the subcontracting of services. 
(h) Application for the provision of services. 
(i) Change in trading name or transformation of the company in the terms laid down in 
the Commercial Code. 
The Operations Management Unit shall info rm the Customs Control Office and the 
Registration Department of these arrangement s immediately so that the appropriate 
checks can be carried out." 
 "Article 16.  Length of stay .  The permitted length of stay for go ods entering under this modality shall 
be as follows:  
(a) Twelve months for semi-manufactured produc ts and the other goods envisaged in 
Articles 15(a), (d), (e), (f), (g) and (i) and 18 of these Regulations. 
(b) Five years for goods not mentioned in the previous subparagraph.  This period may 
be extended for identical periods, subject  to a request endorsed by the Customs 
Control Office and before the expiry of the cu stoms lien originally granted, for those 
goods to which this requirement applies.  The foregoing without prejudice to any 
actions taken by the competent authorities of  the Regime in the event of failure to 
comply with its requirements." G/SCM/N/243/CRI 
Page 42  
 
  "Article 20.  Domestic sale .  To sell products on the domestic ma rket, the beneficiary of this modality 
shall comply with the following requirements:  I. Percentage authorized for domestic sale .  Prior to the commencement of domestic sales by 
the beneficiary enterprise and for each financ ial year, the Operations Management Unit shall 
inform the Directorate, using the means established, of the authorized percentage of sales 
based on estimates of total sales requested by th e enterprise.  In such  cases, the Operations 
Management Unit shall inform the Directorate of the free-on-board (FOB) value expressed in 
United States dollars or the volume it is estim ated the enterprise will sell on the domestic 
market.  If the enterprise needs to sell a la rger amount or volume on the domestic market, it 
shall first request the Management Operations  Unit to make the necessary amendment and 
the latter shall inform the Directorate accordi ngly in order to update the relevant registers. 
 
If the enterprise requests and applies for an amendment to this percentage, PROCOMER 
shall inform the Directorate of the percentage authorized by COMEX.  This percentage shall 
be verified by PROCOMER at least once a year, on the basis of an official certificate to be 
provided by the beneficiary enterprise to th e Operations Management Unit together with its 
annual report on activities, which s hall be forwarded to the Direct orate.  Failure to meet this 
requirement shall place the enterprise under the obl igation to pay the whole of the tax for the 
machinery and equipment.  The foregoing sha ll be without prejudice to the exercise by 
customs of its auditing powers under the law. 
 
If the beneficiary is authorized to sell on the dom estic market a percentage higher than that in 
previous periods and, as a result, the percentage  originally paid on machinery and equipment 
is lower than the new percentage, the enterp rise shall first itself assess and pay the tax 
corresponding to such difference. 
 
If the beneficiary sells on the domestic ma rket a percentage lower than that originally 
envisaged, the difference may not be carried over to a later period.  If the enterprise sells a 
percentage higher than that authorized, then at th e time of the domestic sale it shall pay the 
duties and taxes owed, in accordance with Article  55 of the General Customs Law, without 
prejudice to any other penalty applicable. 
 
The beneficiary enterprise shall indicate in its annual report on activ ities the percentage and 
final amount in United States dollars of total and do mestic sales over the period.  If the report 
shows that the beneficiary sold a percentage  higher than that authorized, PROCOMER shall 
inform the Directorate and the Customs Control Office so that they may check whether the 
corresponding taxes have been paid. 
 II. Method of calculating sales on the domestic market .  The beneficiary enterprise shall 
calculate the percentage of goods brought into  the national customs territory according to 
one of the two formulas below: 
 
For these purposes, "Volume" is understood to mean the total number of commercial units 
listed on the invoices.  The choice of formula used to make the aforementioned calculation 
shall be duly substantiated by the enterpri se and shall be indicated when submitting the 
application.  
The tax payable on machinery, equipment and raw materials shall be calculated as follows: 
 [TT (Total Tax)] x [percentage of domestic sales] = Tax payable.   G/SCM/N/243/CRI 
 Page 43 
 
 
  III. Form of payment .  Beneficiary enterprises, taking into account the special features of their 
own production process, may use th e following forms of payment: 
 
(a) Payment at the time of inward  clearance into the Regime 
Beneficiaries opting for this form of payment  shall, at the time of inward clearance 
into the Regime, pay the share of the taxes corresponding to the goods covered by 
Article 18 of these Regulations and to be u sed to manufacture the final product, in 
accordance with the percentage of domestic  sale previously authorized by COMEX 
for the current financial year. 
 
(b) Payment at the time of domestic sale 
Beneficiaries opting for this form of payment shall, at the time of sale on the domestic 
market, pay all the taxes corresponding to the inputs and other goods that entered under the Regime and were used to manufacture the final product. 
 
Under both options, enterprises shall, at the tim e of inward clearan ce of the machinery and 
equipment under the Regime, pay the relevant s hare of the taxes, in accordance with the 
authorized percentage of sales on the domestic market. 
 IV. Inputs 100 per cent exported .  Enterprises may effect inward  clearance of inputs intended 
one hundred per cent (100 per cent) for export with suspension of payment of all customs 
duties provided that the inward clearance of th ese inputs is the subject of a separate customs 
declaration. 
 V. Purchase with exemption .  If beneficiary enterprises make domestic sales to natural or legal 
persons entitled to exemption for the purchase of  such products, they may make use of the 
said exemptions. 
 VI. Raw materials purchased locally .  In the case of locally purc hased raw materials which have 
been incorporated in the final product and on  which internal taxes are payable, the procedure 
laid down for this purpose by the Directorat e-General of Taxation shall be applied." 
 
"Article 21.  Additional obligations .  In addition to the obligations  set down in Article 182 of the 
General Customs Law, the following obligations  are also incumbent on Regime beneficiaries: 
 
(a) To have been granted the status of a Customs Service Auxiliary and to keep the 
information furnished to the Directorate up to date. 
(b) To commence operations within six months from the date of notification of the 
resolution authorizing the Regime, as pr ovided in the General Customs Law. 
(c) To keep goods inward-cleared under the Re gime solely in the principal plant, 
secondary plants and/or warehouses previously authorized by PROCOMER and approved by the Directorate for each bene ficiary, which shall be regarded as a 
customs operation zone. 
(d) To keep a satisfactory, up-to-date record of the operations carried out under the 
Regime, according to the modality approved. 
(e) To comply with labour provisi ons and pay employer's contributions. G/SCM/N/243/CRI 
Page 44  
 
  (f) To keep separate inventory records, usi ng the FIFO method, along with all 
accounting and operating record s, for goods entering the country, according to the 
end use of the final product. 
(g) To carry out its customs transactions usi ng the means and procedures specified by 
the Directorate for the Regime. 
(h) To comply with the customs legislation,  these Regulations and other related rules 
applicable to the Regime. 
(i) To submit to PROCOMER, on the forms it provides, an annual report on activities 
containing at least the following information: 
(i) Overall movements, in terms of quantity, weight and value, of the goods 
admitted, balances in process, balances in stock, production re-exported or 
sold on the domestic market accord ing to the eight-digit tariff heading. 
(ii) Details of the volume of inputs used for production, together with details in 
terms of quantities of products produced;  this information should indicate 
the eight-digit tariff heading. 
(iii) Use or consumption of spare parts, accessories and the like, and balances in 
stock. 
(iv) Movements of machinery and equipment. 
(v) Photocopy of the sworn income tax declaration. 
(vi) Certificate of net sales by market (domestic or foreign) in terms of value and 
quantity, issued by a certified public accountant. 
(vii) Profit-and-loss account, balance sheet, pre-closing trial balance, in Spanish 
and in colons. 
(viii) In the case of enterprises, legal p ersonality and equity capital structure. 
(ix) A certificate issued by a competent pr ofessional person or body independent 
of the enterprise concerning the percentage of wastage, residue, waste and 
residue tolerance of the production process, for each type of goods entered 
under the Regime. 
(x) Document proving that taxes have been  paid on the machinery, equipment 
and goods used to produce goods for domestic sale according to the percentage authorized for the financial year in question. 
Within four months following the end of the normal financial year, or a non-standard 
financial year as authorized by the Ministry of Finance for a specific ent erprise, beneficiaries 
shall provide PROCOMER with an annual repor t on their activities during the financial year 
that has just ended, containi ng and providing the information specified in the forms drawn up 
for this purpose by PROCOMER and duly publis hed in the Official Journal La Gaceta. 
 
If the report is not submitted or is submitte d in an incomplete form, PROCOMER shall give 
the beneficiary a period of 15 working days, calc ulated from the day following the notification  G/SCM/N/243/CRI 
 Page 45 
 
 
  to this effect, in which to submit the annual  report, rectify any mistakes or submit the missing 
documents, whichever applies.  If the report is not submitted or the mistakes are not rectified 
or the missing documents not submitted duri ng the aforementioned period, PROCOMER shall 
issue a final warning, giving ten working days calculated from the date following the notification in which to comply. 
 
If the report is not submitted within the tim e-limit prescribed in the preceding paragraphs, or 
if it is found that the report has been submitted with substantive errors or omissions and these 
are not remedied within th e time-limit specified by PROCO MER in accordance with the 
preceding paragraph, PROCOMER shall temporarily suspend the enterprise in breach from 
performance of any authorized actions regardi ng activities covered by the Regime, and on the 
same day that the relevant official letter is sent shall notify the Directorate-General of 
Customs, the Customs Control Office and the Di rectorate-General of Finance to ensure the 
concomitant suspension of all Regime transac tions and benefits, such as the transit or 
movement of materials and goods, exemptions  and other operations under the Regime. 
 
The foregoing shall be without prejudice to any revocation of the Regime applicable pursuant 
to the Law, and on the basis of a recommendati on, with supporting ar guments, forwarded to 
COMEX by PROCOMER.  PROCOMER shall give the BCCR electronic acces s to the annual report on activities for the 
purpose of compiling the relevant statistics." 
 "Article 22.  Precautionary suspension .  As a precautionary measure, COMEX shall 
automatically suspend any bene ficiary from Regime benefits if it has not submitted its annual 
report on activities within the said time-limit of four months. 
 
Likewise, such suspension shall be ordered wh en the customs authority informs COMEX that 
the beneficiary has not returned the customs lien duly recorded in the Register of Liens within 
the period prescribed in Article 41 of these Regulations.  Such suspension shall also be ordered if the BCCR notifies COMEX that, for over 
three consecutive months, the beneficiary has fail ed to comply with the provisions of 
Article 21 on the transmission of commercial invoices for exports and domestic sales to the BCCR.  The precautionary suspension shall apply to the importation of raw materials under the 
Inward Processing Regime and shall be communicated to the Directorate not later than the 
working day following its entry into effect, preferably by electronic means, with copies to the Customs Control Office and PROCOMER, for the appropriate action;  the suspension shall remain in place until the anomaly has been rec tified.  The foregoing shall be without 
prejudice to the provisions of Article 49 of these Regulations.  Moreover, neither permits nor 
authorizations may be processed by PROCOMER." 
 
"Article 23.  Authorized percentage of wastage, residue, waste and residue tolerance .  
PROCOMER shall authorize, on the basis of the information furnished by the enterprise, 
a percentage for wastage, residue, waste and residue tolerance for merchandise subject to the Regime and used in the production pro cess.  PROCOMER shall communicate these 
percentages to the Customs Control Office by the means specified by the Directorate-General 
of Customs.  G/SCM/N/243/CRI 
Page 46  
 
  The said percentages shall be tho se to be used by the Customs Control Office as a valid basis 
for writing down inventories with respect to m erchandise inward-cleared into the Regime;  
the foregoing without prejudice to the customs authority's powers of ver ification and control. 
 The Customs Control Office may not apply any reduction to the quantities and weights of 
merchandise entering in percentages different from  those authorized by PROCOMER or from 
those resulting from its own inspections."  "Article 27 bis.  Waste of goods subject to special regulations .  In the case of goods 
inward-cleared under the Regime which require special processes for their destruction, for 
turning them into waste or recycling them b ecause of environmental risks, the beneficiary 
shall employ a technically capable firm for this operation, if it does not have the proper resources or methods to dispose of such materials.  Notification to the Customs authority and its par ticipation shall comply  with the procedures 
prescribed by the Directorate for this purpose." 
 "Article 28.  Donations of merchandise .  Beneficiaries may donate semi-manufactured 
merchandise, residue, waste, seconds, samples, spare parts and accessories, and capital goods, through the Directorate-General for the Administration of Property and 
Administrative Contracting of the Ministry of Finance, in accordance with the terms laid 
down in the Regulations for the Registration and Supervision of Central Administration 
Property.  Donations may be made to institutions recognized as being of public interest or social benefit 
or non-profit-making, State educational centres or institutions, or other State agencies that 
request donations in kind and which are regis tered with the Directorate-General for the 
Administration of Property and Administrative C ontracting.  The register of enterprises 
authorized to receive donations shall be cons ulted by the beneficiary before filing the 
donation application and by the Customs C ontrol Office for the purpose of authorizing 
the donation.  
If possible, the Regime beneficiary shall transmit the donation application to the Customs 
Control Office electronically, together with the information concerning the goods it intends to 
donate.  For purposes of inspection and authorization of  the donation, the Customs Control Office 
shall have a maximum of three working days fr om receipt of the communication from the 
beneficiary.  If these three days pass without customs having taken action on both counts, 
the beneficiary may proceed with the donation an d shall then so inform the Customs Control 
Office within 24 hours of the event, by fo rwarding a copy of the corresponding report. 
 Every donation shall comply with the procedure pr escribed by the Directorate in a decision of 
general scope issued for this purpose and sh all be supported by a document showing due 
receipt by the institution to which the goods were donated and attesting to the participation of 
the customs authority, if it attended within the specified time-limit." 
 "Article 30.  Subcontracting of services .  Beneficiaries may subcontract, subject to an 
application to PROCOMER using the media est ablished for the purpose, a part of their 
production or production process provided t hat they carry out production operations and do 
not become trading companies only.  PROCO MER shall ascertain that the Regime 
beneficiary enterprise is in compliance with the provisions of Article 31 of these Regulations 
and, if appropriate, shall issue the authoriza tion within three working days of submission of  G/SCM/N/243/CRI 
 Page 47 
 
 
  the application.  The said authorization shall be forwarded to the De partment of Statistics 
and Registration of the Directorate using the m echanisms or electronic media established for 
the purpose. 
 
The subcontracting arrangement may be with: 
 
(a) Other Inward Processing Regime or Duty-Free Zone Regime beneficiaries, 
provided that at least 50 cent of the total production volume of the enterprise covered by the Regime is produced by the subcontractor. 
(b) Any natural or legal person established within the national customs territory, 
provided that at least 50 per cent of the total production volume of the 
enterprise covered by the Regime is produced by the beneficiary. 
In this case, the Regime beneficiary ent erprise may transfer the raw materials and 
semi-finished products involved in  the subcontracting arrangement. 
 
Moreover, if the production process so requi res, the inward processing enterprise may 
subcontract, under the same contracting a rrangement, to several enterprises at once. 
 The term of the contractual relationship between the beneficiary and the subcontracted 
enterprise shall be authorized by PROCOMER a ccording to the needs of the beneficiary, 
and may be extended if PROCOMER considers that the reasons for granting the authorization 
still apply, in which case it must so inform the Directorate. 
 Materials and merchandise forming the subject of a subcontracting arrangement may not remain for more than six months outside the enterprise benefiting from the Inward Processing Regime.  This period shall be calc ulated from the time at which the customs 
transit of the materials and merchandise forming the subject of the subcontracting 
arrangement is authorized.  The subcontracting enterprise shall present, in  the annual report, a breakdown of the results 
produced by that date under the subcontracti ng arrangement, in the format specified by 
PROCOMER and the Directorate, which shall in clude a sworn statement submitted by the 
legal representative of the beneficiary indica ting in detail in quantities and measurement 
units all the inventories of the merchandise sent to  the subcontractor.  Moreover, it shall state 
that the merchandise was returned to the subc ontracting enterprise within the specified 
period of six months, giving details of th e products received in quantities and measurement 
units, and any waste generated and delivered and the product of the process, if applicable. 
 
If the term of the contractual relationship is  less than one year, the breakdown in question 
shall be presented within ten working da ys of the end of the subcontract. 
 Where an extension of the contractual relations hip between the beneficiary enterprise and the 
subcontractor is being sought, the report sha ll be submitted together with the application 
three working days before the expiry of the subcontracting arrangement. 
 In all cases, PROCOMER shall forward to the Customs Control Office the breakdown 
provided by the beneficiary enterprise in relation to the results of the subcontracting 
arrangement within five working days of its being approved. 
 
If PROCOMER detects any irregularity in the subcontracting process, it shall immediately inform the Customs Control Office and th e Directorate, for appropriate action. G/SCM/N/243/CRI 
Page 48  
 
   
When a beneficiary needs to move goods cleared temporarily into national customs territory 
to another enterprise authorized in the subcontra cting arrangement in order to continue the 
production process, a new customs declaration s hall not be required and the Customs Control 
Office shall be informed in writing or elect ronically, in accordance with the relevant 
procedures determined by the Directorate for th is purpose, at the latest on the working day 
following the date on which the goods were moved.  The subcontracted enterprise may not use th e goods for purposes other than those envisaged 
in the authorized subcontracting arrangement, so that the goods produced as a result of the 
service provided may only be exported or so ld in national customs territory by the 
subcontracting beneficiary of the Regime.  Th e time-limits for temporary clearance into 
national customs territory shall be calculated as of the date of acceptance of the customs 
declaration authorizing the temporary clearan ce.  The subcontracting arrangement shall be 
subject to the customs control and inspection de termined in the General Customs Law and its 
implementing Regulations.  In such cases, th e goods shall remain covered by the Regime and 
under the responsibility of the beneficiary, whic h shall be liable for any damage or loss 
affecting the goods temporarily cleared into  national customs territory and shall pay the 
relevant duties and taxes, pursuant to Article 24 of the Law."  "Article 32.  Registration of subcontractors .  Enterprises wishing to be subcontracted by 
beneficiary enterprises shall register with PROCO MER by completing the appropriate form.  
When registering they shall: 
 
(a) Describe the activity. 
(b) Provide a sworn statement attesting to the existence of up-to-date inventories 
of raw materials, products being processed and finished products. 
(c) Show that they are up to date with their tax obligations by providing a sworn 
statement. 
(d) Make available to the authorities of th e Ministry of Finance, in the exercise 
of their powers relating to goods under customs control, any information or 
documentation requested concerning the use and finality of the goods 
forming the subject of the subcontracting arrangement, and allow the 
authorities to verify the circumstances if they consider it appropriate. 
Using the appropriate means, PROCOMER shall forw ard the list of registered enterprises to 
the Directorate, the DGT and the BCCR, toge ther with the time-limit authorized for each 
subcontracting arrangement." 
 
"Article 36.  Loan of machinery and equipment .  At the recommendation of PROCOMER, 
the Customs Control Office may authorize loans  of equipment and machinery between Regime 
beneficiaries operating under the 100 per cent re -export modality, for a fixed period, on the 
basis of an application.  In addition to supporting arguments, th e application must set out the 
detailed characteristics of the equipment to be  loaned, giving the brand, model, serial number 
and lien number.  Liability for the equipment and ma chinery shall continue to be borne by the 
beneficiary which brought them into the Regi me, and the Customs Control Office may enforce 
the liens in question in the event of any in stance of non-compliance with requirements.  
The lending of equipment and machinery shall pr oceed in accordance w ith the customs transit 
procedure in force." 
  G/SCM/N/243/CRI 
 Page 49 
 
 
  "Article 38.  Issue of the deed of lien .  For any declaration of entry of machinery and 
equipment under the Regime, the correspondi ng deed of customs lien, covering the 
outstanding portion of the customs debt, shall be issued and registered.  Goods qualifying as accessories or spare parts for machinery and equipment, as defined in 
Article 3 of these Regulations, together with  samples, models, manuals, patterns and 
catalogues needed for the production process or st aff training shall not have to comply with 
this requirement.  If the beneficiary so requests, the customs aut hority may place goods consisting of samples, 
models, manuals, patterns and catalogues under anoth er customs Regime.  If it is required to 
extend the customs lien, this shall be done usi ng the amount originally determined, subject to 
a validated request to the Customs Control Office."  "Article 39.  Requirements for the deed of customs lien .  The first rank statutory lien in 
favour of the revenue authorities on machinery and equipment entering under the Regime and 
any extensions, renewals, partial or total cance llations or any other legal transaction relating 
to the said deed shall be recorded in writi ng, on pre-numbered forms duly authorized by the 
Directorate.  The deed shall also be free of any deletions, smudges or interlinear additions, 
and shall be written in letters, without num bers or abbreviations, except where these form 
part of a mark or emblem. 
 
Any error or omission shall be rectified by means  of a separate note.  Text on the reverse of 
the document shall also be validated with the si gnature of the beneficiary, in accordance with 
Article 40(1) of these Regulations." 
 
Article 2.  Articles 6  bis, 8 bis, 10 bis, 20 bis, 21 bis, 57, 58, 59, 60 and 61 are hereby added to 
Executive Decree No. 34165-H-COMEX of 4 December 2007, published in the Official Journal La Gaceta  of 24 December 2007, Regulations implementi ng the Inward Processing Regime, to read 
as follows, and Article 57 shall be renumbered so that hencef orward it becomes Article 62. 
 
"Article 6 bis.  Recognition of functional equivalence .  For the various formalities covered 
by these Regulations which require the subm ission of physical documents, it shall be 
understood that, if technological media so perm it, electronic documents may replace physical 
documents.  In such cases, any statement of a represen tative or declarative nature, expressed or 
transmitted through an electronic or informatics medium shall be deemed legally equivalent 
to documents issued, received or transmitted by physical media. 
 Likewise, in cases where government authorities d ecide to implement electronic formalities in 
stages, the physical submission of such documen ts may be replaced by electronic submission 
of the digitized document, without prejudice to verification of the original document by the 
Directorate or by other government bodies invo lved in the corresponding formality within 
their competence.  In such ca ses, enterprises shall keep the original physical documents 
properly filed."  "Article 8 bis.  Control of the input-output ratio .  The beneficiary shall include in the request 
for admission to the Regime the input-output ratio for each of the products, by means of a 
certificate issued by a competent professional p erson or body according to the beneficiary's 
production activities.  The competent professi onal person or body may not have subordinate 
labour relations with the applicant.  G/SCM/N/243/CRI 
Page 50  
 
  The certificate shall contain the following information as a minimum: 
 
(a) Details of the processes required to produce the goods covered by the 
Regime. 
(b) Details of the goods to be produced by  the enterprise under the Regime, with 
a precise and accurate description of the goods, including their eight-digit 
tariff classification. 
(c) Details of the various inputs required for each unit produced, with a precise 
and accurate description of the goods, including their eight-digit tariff classification and the percentage used in each unit produced. 
If the input-output ratio changes, the beneficia ry shall submit the new certificate showing the 
input-output ratio in the aforementioned t erms to the Operations Management Unit at 
PROCOMER administering the special export reg imes.  After authorizing it, the Operations 
Management Unit shall forward it immediat ely using the means determined by the 
Directorate. 
 
The National Customs Service, in  exercise of its authority, shall carry out the controls and 
inspections it deems relevant."  "Article 10 bis.  All the requirements may be verified by government authorities using any 
electronic means .  The foregoing, in guarantee of the Principle of Inter-institutional 
Coordination and pursuant to Articles 8 and 9 of Law No. 8220 of 4 March 2002, Law on 
Protecting Citizens from Excessive Admi nistrative Requirements and Formalities, 
and Articles 3, 6, 11 and 16 of Executive Decree No. 32565-MEIC of 28 April 2005, Regulations implementing the Law on Protecting Citizens from Excessive Administrative Requirements and Formalities." 
 
"Article 20 bis.  Exports to countries with free trade agreements .  At the time of seeking 
admission to the Regime or after it has been  granted, enterprises may request PROCOMER 
that exports to countries with which Costa Rica has signed free trade agreements and which 
must be given preferential tariff treatment s hould not receive the benefits of the Inward 
Processing Regime if the agreement contains any provision restricting access to the tariff 
preferences because of the fiscal benefits of the regime.  In any event, COMEX shall note the 
said request in the administrative decision gran ting the Regime or shall add it subsequently 
for those enterprises benefiting th erefrom.  The said authorization shall be forwarded to the 
Directorate by electronic means for the purpose of carrying out the relevant registration and controls. 
 
Before exporting, beneficiaries making use of  the exception provided in the preceding 
paragraph shall pay all the taxes corresponding to the inputs and other goods that entered 
under the Regime and were used to manufacture th e final product for export, together with 
the percentage corresponding to the mach inery and equipment used for production. 
 
For tax on machinery and equipment, PROCOMER shall determine the percentage of tax to 
be paid based on the percentage of exports to  the country concerned in comparison with the 
enterprise's total sales for the previous year or the estimated to tal sales in the case of new 
beneficiaries.  Such information shall also be  forwarded to the Directorate by the means 
determined for the purpose of calculating the customs tax due.  The enterprise shall cease 
paying tax on the use of machinery and equipment when it has paid all the taxes due for using 
such machinery and equipment.  G/SCM/N/243/CRI 
 Page 51 
 
 
   
Enterprises shall, at the time of inward cl earance of the machinery and equipment under the 
Regime, pay the relevant share of the taxes, in accordance with the percentage exported to the 
country concerned."  
"Article 21 bis.  Commercial invoice .  The beneficiary shall substantiate its customs 
declarations with the commercial invoice.  In the case of exports and sales on the domestic market, the commercial invoice shall provide 
the following information for each type of product or goods: 
 
(a) Quantity and measurem ent unit applicable. 
(b) Description of the product:  indicate all the necessary features to be able to 
identify the product:  model, brand, serial number, size, code, material, 
packaging, inter alia.  Where these deta ils do not exist, the enterprise shall 
indicate any other element to permit the goods to be identified. 
(c) Unit price of the product, product mean ing any goods described in sufficient 
detail to be related to a single price. 
(d) Amount transacted by product in t erms of the "Incoterm" applicable. 
(e) Currency in which the amounts and prices are expressed. 
 
Regime beneficiaries which export or sell tangi ble products on the domestic market shall 
forward to the BCCR electronically, using the me ans provided for this purpose, a copy of the 
commercial invoice or the invoice in electroni c form or a printed copy.  In the foregoing 
cases, it shall indicate the number of the cu stoms declaration or provide an electronic 
compilation of the invoices processed over one month, including the following details:  tariff 
heading, country of destination, name of th e consignee, product c ode (where applicable), 
description, price and quantity of the product.  In  the latter case, the BCCR may request the 
invoices and DUAs for a period selected randomly.  Likewise, together with the foregoing 
information, the enterprise shall send an elect ronic report monthly, including the details 
required by the BCCR in order to calculate the value added of the production of the goods.  
The BCCR shall identify and notify the admin istrative unit to which the beneficiary 
enterprises shall transmit the information requested. 
 In the foregoing cases, the maximum time-limit for submitting the data shall be ten working 
days after the end of the calendar months in which the transactions occurred.  In exceptional 
cases, and by common agreement between the be neficiary and the BCCR, the submission may 
be in accordance with the en terprise's accounting month." 
 "Article 57.  Goods regularly shipped .  Goods regularly shi pped between beneficiary 
enterprises under this Regime and the Duty-Free Zone Regime the nature of which implies an 
ongoing shipment process that is difficult to separate out in detail and which are moved by 
non-conventional means may be recorded together on a single customs declaration for each 
product showing the operations  conducted each month. 
 The single customs declaration shall be submitte d within the first five working days of each 
month.  For the foregoing purposes, the Direct orate shall keep a register of enterprises 
authorized to submit such declarations subject  to verification of the nature of the operation 
conducted by the beneficiary enterprise." G/SCM/N/243/CRI 
Page 52  
 
   
"Article 58.  Repair, maintenance and reconstruction of transport units .  Beneficiary 
enterprises whose authorized ac tivities involve the repair, maintenance and/or reconstruction 
of transport units may enter these under the Inward Processing Regime for the purpose of 
carrying out such procedures.  When the transpor t units arrive in the port area, they shall be 
moved directly to the installations of the be neficiary enterprise under the Inward Processing 
Regime and shall be entered under the Regime by means of a customs declaration.  After the 
relevant procedure has been completed and the export declaration under the Regime has been 
processed, the transport unit may remain in na tional customs territory for an additional 
period, which may not exceed 15 working  days after the export authorization. 
 
If the transport unit is in national customs t erritory under the Temporary Import Regime and 
needs to undergo one of the aforementioned pr ocedures, it may also be cleared into the 
installations of the inward processing enterp rise by means of a customs declaration. 
 
The beneficiary enterprise shall keep an inven tory of transport units entering under the 
Regime in each of the aforementioned circumstances.  If, in the course of exercising its supervisory powers, the customs authority determines that 
the transport units were entered under the Regime for any purpose other than those 
authorized by this Article, it shall initiate the corresponding regular and penalty procedures." 
 
"Article 59.  Change of Regime .  If a beneficiary wishes to tr ansfer to the Duty-Free Zone 
Regime, it shall make the necessary application fo r transfer of Regime to PROCOMER, which 
shall forward a copy thereof to the Direct orate and to the Customs Control Office. 
 
PROCOMER shall transmit to the Ministry of  Foreign Trade the technical recommendation 
on relinquishing the Inward Processing Regime because of transfer to the Duty-Free Zone 
Regime.  The provisions in the Law on the Duty-Free Z one Regime and its implementing Regulations 
shall be complied with for admission to the Duty-Free Zone Regime.. 
 
PROCOMER shall notify the beneficiary simulta neously of cancellation of the Inward 
Processing Regime as a result of transfer to the Duty-Free Zone Regime after it has been approved by COMEX;  together with the Ex ecutive resolution granting admission to the 
Duty-Free Zone Regime.  Copies of these notifica tions shall be forwarded to the Directorate 
and the Customs Control Office. 
 After receiving the aforesaid notifications, the Directorate shall cancel the inward clearance 
of goods under the Inward Processing Regime and  shall activate the provisional code as a 
Customs Service Auxiliary for Duty -Free Zones in order to facilit ate the inward clearance of 
goods.  The beneficiary's codes as Customs Servi ce Auxiliary shall remain in effect for both 
Regimes for a period of 20 working days to enable them to submit customs declarations. 
 Within this period, a certificate shall be  obtained from a certified public accountant 
containing the inventory of the machinery, equipment, raw materials, products being 
processed and final products, giving details of th e quantity, description, tariff classification, 
book value, number of the customs declarati on for inward clearance into the Inward 
Processing Regime and location, as well as domestic sales made to date on which the 
payment of the corresponding percentage for ma chinery and equipment used to produce the 
goods sold domestically remains outstanding.   G/SCM/N/243/CRI 
 Page 53 
 
 
  This certificate shall be submitted to the Custom s Control Office by the beneficiary within the 
same period, together with the customs declar ations required for payments under the Inward 
Processing Regime and transfer to the Duty-Free Zone Regime.  The Customs Control Office 
shall verify that the information in the cust oms declarations corresponds to the data in the 
certificate submitted. 
 
If there are inconsistencies between the data in  the inventory and the customs declarations, 
the beneficiary shall provide proof of the destination of the goods.  If the beneficiary fails to submit the invento ry certificate within the period of 20 working days 
or does not provide proof of the destination of the goods, at the expiry of this period the 
Directorate shall annul the Customs Service Aux iliary Code for Duty-Free Zones for sales on 
the domestic market, exports and sub-contracting until the enterprise makes good the situation or pays the corresponding taxes, fo r which it shall have a maximum period of 
ten working days.  If the enterprise fails to co mply with the foregoing, the Directorate shall 
cancel the codes for both Regimes and shall inform COMEX so that it can initiate the 
corresponding administrative procedure.  If the transfer of goods from the Inward Proces sing Regime to the Duty-Free Zone Regime is 
completed satisfactorily, the Customs Control O ffice shall immediately inform the Directorate 
so that it may definitively cancel the In ward Processing code and issue the corresponding 
decision revoking the status of Custom s Service Auxiliary for Inward Processing and 
definitively grant the status of Custom s Service Auxiliary for Duty-Free Zones. 
 This decision shall be notified to PROCOMER, the Customs Control Office and the interested 
party, which within 15 working days shall s ubmit to PROCOMER a final report on activities 
under the Inward Processing Regime in the term s laid down in Article 21 of the Regulations 
implementing the Inward Processing Regime.  The beneficiary shall be liable for acts resulti ng from its activities as a beneficiary of the 
Inward Processing Regime and its status as Cu stoms Service Auxiliary for Inward Processing 
and for paying any customs tax due that is ascert ained subsequently to the authorization as a 
beneficiary of the Duty-Free Zones Regime and its  status as a Customs Service Auxiliary 
under the new Regime.  Failure to comply with  the aforementioned obligations may lead to 
initiation of administrative proceedings on the part of COMEX."  "Article 60.  Permanent electronic address .  Beneficiary enterprises shall designate an 
electronic mail address as their legal domicile fo r the receipt of notifications relating to the 
formalities.  This information shall be trans mitted by means of a specific declaration.  
The enterprise shall be responsible for the secu rity and reliability of the account selected. 
 The indication of the electronic address may be changed or cancelled at any time, subject to 
notification to PROCOMER, without prejudice to the legal consequences that occurred up to 
that moment." 
 "Article 61.  Subsidiary means of notification .  In addition to the permanent electronic 
address, enterprises and entities which conduct el ectronic formalities with PROCOMER shall 
indicate a fax number to be used if it proves impossible to send the notification via electronic 
mail, for reasons that cannot be imputed to the enterprise or entity.  For the purpose of 
notification using this medium, five attempts to transmit the fax to the number indicated shall 
be made, at intervals of no less than thirty mi nutes.  Three of these attempts shall be made on 
the first day and two on the following day;  th e latter two attempts shall be made on a working G/SCM/N/243/CRI 
Page 54  
 
  day and after eight o'clock.  If none of these a ttempts are successful, this shall be noted in a 
single document to this effect for the purposes of the automatic notification." 
 
Article 3.  The Single Transitional Provisi on in Executive Decree No. 34165-H-COMEX of 
4 December 2007, published in the Official Journal La Gaceta  No. 247 of 24 December 2007, 
Regulations implementing the Inward Processing Re gime, is hereby amended to read as follows: 
 
"Transitional Provision I. Beneficiary enterp rises already admitted to the Regime may 
calculate the percentage of goods entered into  national customs territory using one of the 
two formulas set out in part II of Article 20 of these Regulations.  For these purposes, they 
shall submit to PROCOMER the respective request  for a change in the formula used for 
the calculation." 
 
Article 4.  Two Transitional Provisions are here by added to Executive Decree No. 34165-H-COMEX 
of 4 December 2007, published in the Official Journal La Gaceta  No. 247 of 24 December 2007, 
Regulations implementing the Inward Processing Regime, to read as follows: 
 
"Transitional Provision II.  For the purposes of compliance with transmission to the 
Informatics System TIC@, enterprises already  admitted to the Regime shall transmit the 
following information to the Directorate elec tronically:  goods authorized to enter under the 
Regime, with details of the eight-digit tariff cl assification, and produc ts authorized for export 
or domestic sale, with the description of the eight -digit tariff classification.  This information 
shall be sent to the Directorate in compliance with the programme established in a resolution 
of general scope, which under no circumstances shall determine a period of less than one month for its submission."  
"Transitional Provision III.  For the purpo ses of Article 8 bis of these Regulations, 
enterprises already admitted to the Regime s hall submit the certificate of the input-output 
ratio, together with the annual repor t on activities corresponding for 2011." 
 
Article 5.  These Provisions shall enter into force on  the date of publication in the Official Journal 
La Gaceta . 
 
Given in San José, on the sixth day of the month of January in the year two thousand and eleven.  G/SCM/N/243/CRI 
 Page 55 
 
 
  Amendments to the Regulations Implem enting the Inward Processing Regime 
 
No. 36726-COMEX-H  
 
THE PRESIDENT OF THE REPUBLIC, 
 
THE MINISTER OF FOREIGN TRADE AND 
 
THE MINISTER OF FINANCE, 
 
 In exercise of the authority and powers conferred on them by Articles 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;  the Law Establishing the Ministry of 
Foreign Trade and the Foreign Trade Promotion Agen cy of Costa Rica, No. 7638 of 30 October 1996;  
and Articles 179 to 186 of the General Cu stoms Law, No. 7557 of 20 October 1995, 
 
Whereas : 
 I. Articles 179 et seq  of the General Customs Law, No. 7557 of 20 October 1996, lay down the 
basic rules for the Inward Processing Regime, delega ting authority to the Executive for the requisite 
Regulations. 
 
II. The State should endeavour to facilitate trade, which implies the streamlining and 
harmonization of customs procedures and formaliti es and the exchange of information among the 
different government entities, without prejudice to th e customs controls in effect for the Regime's 
operations. 
 
III. The Ministry of Foreign Trade and the Ministry  of Finance, as administrators of the Regime 
and responsible for the control of goods, respectiv ely, should ensure that procedures facilitate the 
operation of the regime and do not ge nerate unnecessary additional costs. 
 IV. The current customs environment requires m odernization of administrative management and 
information technology, eliminating unnecessary obstacles, duplicate documents, delays and other 
bureaucratic formalities with no value added.  
THEREFORE DECREE: 
 
Amendments to Articles 8, 8  bis, 20, 36, 39 and 40 of the Regulations 
Implementing the Inward Processing Regime, Executive Decree 
No. 34165 H-COMEX of 4 December 2007 
 
Article 1.  Articles 8, 8  bis, 20, 36, 39 and 40 of Executive Decree No. 34165-H-COMEX of 
4 December 2007, published in the Official Journal La Gaceta  of 24 December 2007, Regulations 
implementing the Inward Processing Regime, are hereby amended as follows: 
 
"Article 8.  Application for admission to  the Regime and the status of Customs 
Service Auxiliary.  
 Any enterprise interested in operati ng under the Inward Processing Regime and 
obtaining the status of Customs Service Auxilia ry shall make application to PROCOMER on 
the corresponding form.  This form shall contain the following information and be accompanied by the following documentation: 
 G/SCM/N/243/CRI 
Page 56  
 
  I. Information common to the application for admission to the Regime and that for the 
status of Customs Service Auxiliary: 
 
(a) Name of applicant. 
(b) Identity document. 
(c) Address or means of notification. 
(d) Address of the installations. 
(e) Ownership of the property:  indicate whether the property is owned by the 
enterprise or leased. 
(f) Telephone number, fax and e-mail address. 
(g) Status of the enterprise:  in operation or a project. 
(h) Name of legal representative, identity document and number. 
(i) Description of the activity and the eight- digit tariff classification of the inputs 
and products. 
(j) Sworn statement indicating that: 
(i) The enterprise is not engaged in the manufacturing or marketing of 
weapons of any kind (whether pe rmitted or prohibited) or of 
components, assemblies or sub-assemblies used exclusively in the defence industry. 
(ii) The enterprise is registered in th e Ministry of Finance's Register 
of Taxpayers. 
(iii) The enterprise is up to date with the payment of all its contributions to 
the Costa Rican Social Security Fund. 
(k) The signature of the applicant or the le gal representative of the enterprise on 
the form shall be authenticated by an  attorney at law or notary public. 
II. Information required for the granting of the Inward Processing Regime: 
 
(a) Products to be manufactured.  Details of the products to be manufactured, 
including the eight-digit tariff classification. 
(b) Products to be sold on the domestic ma rket, where applicable, expressed in 
the eight-digit tariff classification. 
(c) List of the machinery, equipment and spare parts which will enter under 
either modality. 
(d) Production process by product description, including the input-output ratio in 
the terms laid down in Article 8  bis of these Regulations.  If the Regime 
beneficiary enterprise decides to produce goods other than those originally  G/SCM/N/243/CRI 
 Page 57 
 
 
  authorized and for which it did not submit any information to the Operations 
Management Unit, it shall describe them in the new application, including the 
eight-digit tariff classification, and sh all await approval by the Operations 
Management Unit before starting to produce the goods.  The Operations Management Unit shall have not more than  five working days within which to 
reach a decision and inform the Direct orate, using the means established.  
Inspection bodies may, by means of post facto controls, verify that the information supplied is correct. 
III. Information required for the granting of the status of Customs Service Auxiliary: 
 
(a) Name and identity of the staff members who will deal directly with the 
National Customs Service. 
(b) Sworn statement showing that the registered owner has granted the 
appropriate authorization to operate on the premises in which the activity 
under the Regime will take place. 
(c) The enterprise undertakes to acquire appr opriate software for electronic data 
transmission to the information system of the National Customs Service. 
(d) Sworn statement, registered with a notary,  attesting to the existence of a place 
suitable for the safekeeping of the docu ments which, in accordance with its 
status as a Customs Service Auxiliary, it is required to keep. 
IV. Documentation: 
 
(a) Certificate of legal personality issued not more than three months previously, 
unless the National Registry provides for another time-limit. 
(b) Special power of attorney if the applica tion is made by a person other than the 
legal representative, with express mention of the fact that the power of 
attorney authorizes him to submit the a pplication for admission to the Regime 
and granting of the status of Customs Service Auxiliary. 
(c) Notarized copy of the front and back of the ID document of the legal 
representative and the staff members who will deal directly with the National Customs Service, or photocopy thereof, in which case the original identity document must be shown to the official receiving the documentation, 
who will note on the photocopy that it was compared to the original. 
(d) If the applicant is a natural person, the following shall also be included: 
(i) Notarized copy of the front and b ack of the ID document of the 
applicant, or photocopy thereof, in which case the original identity document must be shown to the official receiving the documentation, 
who will note on the photocopy that it was compared to the original. 
(ii) Recent certificate (less than 30 calendar days old) issued by the 
Costa Rican Social Security Fund cer tifying that he does not work for 
the Costa Rican State or its institutions. G/SCM/N/243/CRI 
Page 58  
 
  (iii) A certificate from the Offenders' Register (Offence form), not more 
than two months old (to be procured directly from the entity responsible for labour matters).  The requirements in subparagraphs 
(i) and (ii) above may also be validated by the competent authorities." 
"Article 8  bis.  Control of the input-output ratio.  The beneficiary shall include in the request 
for admission to the Regime, depending on the beneficiary's production activities, the 
input-output ratio for each of the products.  For such purposes, the beneficiary shall provide a sworn statement based on technical informa tion on the enterprise's production process. 
 
 The sworn statement shall contain the following information as a minimum: 
 
(a) Details of the processes required to produce the goods covered by the 
Regime. 
(b) Details of the goods to be produced by  the enterprise under the Regime, with 
a precise and accurate description of the goods, including their eight-digit 
tariff classification. 
(c) Details of the various inputs required for each unit produced, with a precise 
and accurate description of the goods,  including their eight-digit tariff 
classification and the percentage used in each unit produced. 
(d) Details of the inputs 100 per cent exported for enterprises which wish to 
make use of the modality laid down in subparagraph IV of Article 20 of these 
regulations, including the eight-digit tariff classification.  For these purposes, 
PROCOMER shall forward this information to the Directorate. 
 If the input-output ratio changes, the be neficiary shall submit the new certificate 
showing the input-output ratio in the aforemen tioned terms to the Operations Management 
Unit at PROCOMER administering the special export regimes.  After authorizing it, the 
Operations Management Unit shall forward it immediately using the means determined by 
the Directorate.   The National Customs Service, in exercise of  its authority, shall carry out the control 
and inspections it deems relevant." 
 
"Article 20.  Domestic sale .  To sell products on the domestic market, the beneficiary of this 
modality shall comply with the following requirements:  I. Percentage authorized for domestic sale .  Prior to the commencement of domestic 
sales by the beneficiary and for each financia l year, the Operations Management Unit 
shall inform the Directorate, using the mean s established, of the authorized percentage 
of sales based on estimates of total sales re quested by the enterp rise.  In such cases, 
the Operations Management Unit shall inform the Directorate of the free-on-board (FOB) value expressed in United States dolla rs or the volume it is estimated the 
enterprise will sell on the domestic market.  If the enterprise needs to sell a larger 
amount or volume on the domestic market, it shall first request the Management 
Operations Unit to make the necessary am endment and the latter shall inform the 
Directorate accordingly in order to update the relevant registers. 
 
 If the enterprise requests and applies fo r an amendment to this percentage, 
PROCOMER shall inform the Directorate of the percentage authorized by COMEX.   G/SCM/N/243/CRI 
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  This percentage shall be verified by PROCOMER at least once a year, on the basis of 
an official certificate to be provided by the beneficiary enterprise to the Operations 
Management Unit together with its annua l report on activities, which shall be 
forwarded to the Directorate.  Failure to meet this requirement shall place the 
enterprise under the obligation to pay the whole of the tax for the machinery and 
equipment.  The foregoing shall be without prejudice to the exercise by customs of its 
auditing powers under the law.   If the beneficiary is authorized to se ll on the domestic market a percentage 
higher than that in previous periods and, as a result, the percentage originally paid on 
machinery and equipment is lower than the new percentage, the enterprise shall first 
itself assess and pay the tax co rresponding to such difference. 
  If the beneficiary sells on the domestic market a percentage lower than that 
originally envisaged, the diffe rence may not be carried over to a later period.  If the 
enterprise sells a percentage higher than th at authorized, then at the time of the 
domestic sale it shall pay the duties and tax es owed, in accordance with Article 55 of 
the General Customs Law, without prejud ice to any other penalty applicable. 
  The beneficiary enterprise shall indicate in its annual report on activities the percentage and final amount in United Stat es dollars of total and domestic sales over 
the period.  If the report shows that the bene ficiary sold a percentage higher than that 
authorized, PROCOMER shall inform the Di rectorate and the Customs Control Office 
so that they may check whether th e corresponding taxes have been paid. 
 
II. Method of calculating sales on the domestic market .  The beneficiary enterprise 
shall calculate the percentage of goods br ought into the national customs territory 
according to one of the two formulas below: 
 
(A) VALUE DS (Domestic sales )
 X 100 = Percenta ge of domestic sales
 VALUE TS (Total sales )
   
(B) VALUE DS (Domestic sales )
 X 100 = Percenta ge of domestic sales
 VOLUME TS (Total sales )
 
 For these purposes, "Volume" shall be understood to mean the total number 
of commercial units listed on the invoices.  The choice of formula used to make the 
aforementioned calculation shall be duly subs tantiated by the enterprise and shall be 
indicated when submitting the application.   The tax payable on machinery, equipment and raw materials shall be calculated as follows: 
 
 [TT (Total Tax)] x [percentage of domestic sales] = Tax payable.  
III. Form of payment .  Beneficiary enterprises, taking into account the special features 
of their own production process, may use the following forms of payment: 
 
(a) Payment at the time of inward clearance into the Regime.  Beneficiaries 
opting for this form of payment shall, at the time of inward clearance into the G/SCM/N/243/CRI 
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  Regime, pay the share of the taxe s corresponding to the goods covered 
by Article 18 of these Regulations and to be used to manufacture the final product, in accordance with the percentage of domestic sale previously 
authorized for the current financial year. 
(b) Payment at the time of domestic sale.  Beneficiaries opting for this form of 
payment shall, at the time of sale on the domestic market, pay all the taxes 
corresponding to the inputs and othe r goods that entered under the Regime 
and were used to manufacture the final product. 
 Under both options, enterprises shall, at the time of inward clearance of the 
machinery and equipment under the Regime, pa y the relevant share of the taxes, in 
accordance with the authorized percen tage of sales on the domestic market. 
 
IV. Inputs 100 per cent exported .  Enterprises may effect inward clearance of inputs 
intended one hundred per cent (100 per cent) for export with suspension of payment of all customs duties provided that the inwa rd clearance of these inputs is the subject 
of a separate customs declaration. 
 V. Purchase with exemption .  If beneficiary enterprises make domestic sales to natural 
or legal persons entitled to exemption for the purchase of such products, they may 
make use of the said exemptions. 
 
VI. Raw materials purchased locally .  In the case of locally purchased raw materials 
which have been incorporated in the fi nal product and on which internal taxes are 
payable, the procedure laid down for this purpose by the Directorate-General of Taxation shall be applied." 
 
"Article 36.  Loan of machinery and equipment .  The Customs Control Office may 
authorize loans of equipment and machinery between Regime beneficiaries operating under 
the one hundred per cent re-export modality, for a fixed period, on the basis of an application.  In addition to supporting arguments , the application must set out the detailed characteristics 
of the equipment to be loaned, giving the brand, model, serial number and lien number.  
Liability for the equipment and machinery shall c ontinue to be borne by the beneficiary which 
brought them into the Regime, and the Cust oms Control Office may enforce the liens in 
question in the event of any instance of non-compliance with requirements.  The lending of equipment and machinery shall proceed in acco rdance with the customs transit procedure 
in force."  
"Article 39.  Requirements for the deed of customs lien .  The first rank statutory lien in 
favour of the revenue authorities on machinery and equipment entering under the Regime and 
any extensions, renewals, partial or total cancel lations or any other legal transaction relating 
to the said deed shall be recorded in writing, on  the forms duly authorized by the Directorate.  
The deed shall also be free of any deletions , smudges or interlinear additions, and shall be 
written in letters, without numbers or abbrevia tions, except where these form part of a mark 
or emblem. 
  Any error or omission shall be rectified by means of a separate note.  Text on the 
reverse of the document shall also be validat ed with the signature of the beneficiary, 
in accordance with Article 40(1) of these Regulations." 
 
"Article 40.  Information to appear on the deed of lien .  The deed of customs lien shall 
contain at least the following information:  G/SCM/N/243/CRI 
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(a) Surname and first names, ID document and r esidential address in the case of a natural 
person, or the trading name, name, legal ID document and domicile in the case of a 
legal person;  this person shall be the debtor for all purposes. 
(b) Amount in colons of the tax payable, which shall be at least equal to the total amount 
of tax paid on the corresponding customs declaration. 
(c) The fact that the lien is given as a first-rank lien, showing the name of the Customs 
Control Office in favour of which the lien is given. 
(d) Origin of the lien - this will be the im portation of the merchandise under the Regime, 
showing the number and date of the customs declaration in question. 
(e) Description, weight, customs value, and exact quantity of the merchandise given 
as guarantee. 
(f) Location where the merchandise is to be held, and who is responsible for its 
safekeeping. 
(g) Location where the payment of the debt is to  be made;  this shall be the same as the 
location of the Customs Control Office. 
(h) Expiry date of the lien or extension, wh ich shall under no circumstances exceed the 
period set down as the time for which the merchandise is to remain in Costa Rica. 
(i) The fact that the length of stay of th e goods has expired without the merchandise 
having been re-exported or definitively importe d, or if it is demonstrated that the 
enterprise has used the merchandise improperl y or disposed of it otherwise than as 
authorized, the Customs Control Office sha ll initiate the procedure laid down in 
Articles 43 to 45 of these Regulations for collection of the tax.  It shall also be stated that at the conclusion of that procedure, and after the period of five working days set down in Article 61 of the Law, if voluntary payment of the taxes has not been made, the Customs Control Office will proceed to sell the merchandise by public auction, 
in accordance with the provisions set down to this end. 
(j) The fact that entry in the Register of Li ens of the Public Registry is mandatory, 
and shall not be subject to the payment of any tax. 
(k) Place and date of issue of the deed. 
(l) Signature of the beneficiary or its lega l representative, duly authenticated by an 
attorney-at-law, or failing that, counte rsigned by the person that is the legal 
representative of the institution established by agreement between the administrative 
authority for the Regime, PROCOMER, the Directorate and the said institution for 
the purpose of completing the formalities,  validated by the Property Register. 
 When the lien is given through an institu tion such as the ones above, it shall also be 
signed by two eyewitnesses to the granting of the lien, giving full details of both of them.  
The aforesaid institution shall verify that the data  and signature of the beneficiary enterprise's 
legal representative correspond to those registered  and, where applicable, whomsoever is the 
legal representative of the institution shall c ountersign the customs lien at no charge in the 
terms indicated and shall attach the security  stamp issued by the Property Register. G/SCM/N/243/CRI 
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 The authorized institution shall take all necessary measures for the proper use, storage 
and conservation of the security stamps.  For all purposes, the safekeeping, administration and use of security stamps issued by the Propert y Register to the institution shall be the 
responsibility of the person that is the legal representative of the authorized institution." 
 
"Article 2.  These Provisions shall enter into force on the date of publication in the Official Journal 
La Gaceta ." 
 Given in San José, on the twenty-sixth day of the m onth of July in the year two thousand and eleven. 
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