WORLD TRADE  
ORGANIZATION  G/SCM/N/211/CRI 
12 July 2010 
 
 (10-3787) 
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  
 
COSTA RICA 
 
 
 The following communication, dated 30 June 2010,  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 6 and 
G/SCM/62/Add.1 to 6).  G/SCM/N/211/CRI 
Page 2  
 
  CONTENTS 
 
  Page 
 
NOTIFICATION ................................................................................................................... ............. 3 
ANNEXES ........................................................................................................................ ...................16 
 
E
XECUTIVE DECREE NO. 35424  OF 7 AUGUST 2009  - AMENDMENTS TO ARTICLES 157 
AND 166 OF THE REGULATIONS IMPLEMENTING THE GENERAL CUSTOMS LAW.................................16 
 
EXECUTIVE DECREE NO . 34738-COMEX-H  OF 29 AUGUST 2008  - AMENDMENTS  
TO THE REGULATIONS IMPLEMENTING THE INWARD PROCESSING REGIME ........................................18 
 E
XECUTIVE DECREE NO. 35423-COMEX-H  OF 7 AUGUST 2009  - AMENDMENTS  
TO EXECUTIVE DECREE NO. 34165  OF 4 DECEMBER 2007  - REGULATIONS  
IMPLEMENTING THE INWARD PROCESSING REGIME  ...........................................................................30 
 L
AW NO . 8794  OF 12 JANUARY 2010,  AMENDMENTS TO THE DUTY-FREE ZONE 
REGIME LAW, NO. 7210  OF 23 NOVEMBER 1990..................................................................................41 
 E
XECUTIVE DECREE NO. 36000-COMEX-H  OF 28 APRIL 2010  - AMENDMENTS  
TO THE REGULATIONS IMPLEMENTING THE DUTY-FREE ZONE REGIME LAW - 
EXECUTIVE DECREE NO. 34739-COMEX-H  OF 29 AUGUST 2008  ......................................................51  G/SCM/N/211/CRI 
 Page 3 
 
 
  NOTIFICATION 
 
A. STANDSTILL REQUIREMENTS OF THE PROCEDURES FOR EXTENSIONS UNDER ARTICLE 27.4 
 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 amendmen ts thereto, and its im plementing 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 2009. 
 
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 No vember 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 
                                                      
1 As indicated in paragraph 10(d) (Action Plan for the elimination of export subsidies) in 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 classified under the new category (f) in Article 17 of Law 
No. 7210. 
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 and 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, G/SCM/N/211/CRI 
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• Regulations implementing the Duty-Fr ee 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 
 
• General Customs Law No. 7557 of 20 Octobe r 1995, Section I, Chapter V (Duty-Free 
Zone Regime4) 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 
                                                                                                                                                                     
"Amendments to the Duty-Free Zone Regime Law No. 7210 of 23 November 1990 " (attached hereto as an 
Annex). 
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 December 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 Nove mber 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 Costa Rica's notification in document G/SCM/N/160/CRI), and 
Executive Decree No. 34166 of 4 D ecember 2007 (attached as an Annex 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 notification in document G/SCM/N/186/CRI-G/SCM/N/192/CRI).  The 
latter did not amend or alter the benefits of the Duty-Free Zone Regime.  The latter amendment is contained in 
Executive Decree No. 36000-COMEX-H of 28 April 2010 " Amendments to the Regulations implementing the 
Duty-Free Zone Regime Law - Executive De cree No. 34739-H-COMEX of 29 August 2008 " (attached hereto as 
an Annex). 
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 Division), Ex ecutive Decree No. 32098 of  23 September 2004 (available for consultation 
in the archives of the Rules Division), Executive Decree No. 33915 of 30 January 2007, and Executive Decree 
No. 35424 of 7 August 2009 (attached hereto as an Annex).  G/SCM/N/211/CRI 
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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 z one 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 import, and exemption from all import taxes and consular fees on the import of motor vehicles 
required for their operation, production, administration 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; 
 
 (d) exemption from all taxes relating to the e xport 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 cap ital and net assets, payment of land tax and 
of the tax on the transfer of real estate; 
 
 (f) exemption from sales and consumption 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 e xports of commercial or industrial samples; 
 
 (k) to enhance their business operations, en terprises 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; 
 
                                                     
 
8 Law No. 8794 of 12 January 2010 amended the Duty-Free Zone Regime Law No. 7210 of 
23 November 2010 on and provided that packing, wrapping and containers and computer equipment and electronic waste and other waste materials resulting 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/211/CRI 
Page 6  
 
   (l) enterprises based in relatively less-devel oped zones are entitled to a credit equivalent 
to 10 per cent of the total amount of wages and salaries paid the previous year;  this amount decreases by two percentage points per year and expires after five years; 
 
 (m) export-processing enterprises which, ha ving 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 and regulations, a nd international agreements signed 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; 
 
 (d) enterprises which manage parks wher e enterprises 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 scien tific 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 floating docks for shipbuilding, repair or 
maintenance.
9 
 
 Banking, financial and insurance entities base d in duty-free zones do not qualify for the 
benefits of this Regime.  Neither do natural or  legal persons engaged in  providing professional 
services qualify for the Regime.10 
                                                      
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) 
in 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 engaged in mining, exploration or extraction of hydrocarbons, 
the production or sale of arms and ammunition containing depleted uranium, companies engaged in the production or sale of any type of arms and enterprises which generate electric power, unless the power is for 
their own consumption, are not eligible for the Duty-Free Zone Regime either.  G/SCM/N/211/CRI 
 Page 7 
 
 
   
 There are several stages in the granting of Regime status:   (a) Any natural or legal person wishing to jo in 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 October 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 applica tion 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 
ordinary meeting 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 th en ratified by the Executive, by a resolution 
citing the details specified in the Regulations implementing the Law. 
 
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, the Regime 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 assets and from payment of land tax for a 
period of ten years.
12 
  - 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
13, according to the following distinctions:14 
                                                      
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. 
12 See section B.5(e) of this notification. 
13 See section B.5(h) of this notification. G/SCM/N/211/CRI 
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(a) For enterprises based in "relatively mo re 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 "relatively 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 business taxes for a period of ten years.
15 
 
9. Trade effects of the subsidy16 
 At the present time, there are 247 enterprises receiving the benefits of Duty-Free Zone status.  
Between them, those firms generated 54.2 per cent of Costa Rica's total exports in 2009, as compared 
with 1991, when 81 enterprises covered by the Re gime accounted for only 9.3 per cent of total 
exports.  In 2009, roughly 1,201 different pr oducts were exported to 106 countries under the 
Duty-Free Zone Regime. 
 
 It should be noted that, in 2009, sales abroad by these enterprises amounted to 
US$4,701.2 million.  Currently, the Duty-Free Z one Regime is directly generating jobs for 
approximately 53,000 workers.  Costa Rica:  Direct jobs created by the Duty-Free Zone Regime 
 2007 2008 2009 
Duty-free zone regime 45,000 53,120 53,000 
Source : PROCOMER 
 
 Along with this favourable socio-economic impact, the installation of high-technology 
enterprises has been conducive to technology tran sfer and the development of a significant 
knowledge-based industry in the domestic market, pl us a specialized and highly competitive labour 
force.  Costa Rica:  Total exports and duty-free zone exports 
in US$ millions 
 2007 2008 2009 
Duty-free zone 5,066.0 4,982.4 4,701.2 
Total exports 9,343.1 9,569.7 8,675.6 
Source : PROCOMER 
 
                                                                                                                                                                     
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 situated  within or outside the Expanded Greater Metropolitan 
Area (GAMA), as set out in paragraph 10(d) (Action Plan  for the elimination of export subsidies) in 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/211/CRI 
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  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 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 drafted 
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 a nd signed by the Executive on 12 January 2010.  
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 
the Official Journal La Gaceta  No. 15 of 22 January 2010.  Law No. 8794 is attached hereto as an 
Annex.   After the necessary procedures for amending the Duty-Free Zone Regime Law had been 
completed, during the first few months of 2010 the 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 
for the Law were signed on 28 April 2010 and came into effect on 15 June 2010.  A copy of Decree No. 36000-COMEX-H of 28 April 2010 is attached hereto as an Annex. 
 
(d) Description of the amendments 
 The amendments to the Duty -Free Zone Regime Law No. 7210 incorporate the following 
major changes:  
• Eliminating 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 does not require export of 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 G/SCM/N/211/CRI 
Page 10  
 
  "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 whose nature and special features are 
such that it could be made in another count ry or be transferred to another country;  
and 
  - on the date of submitting the applicati on for approval under the Duty-Free Zone 
Regime, 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 Execu tive for this purpose will be responsible for 
defining strategic sectors.  In order to define  a strategic sector, the aforementioned special 
commission shall take into consideration the Natio nal Development Plan, the prior criterion for the 
sectors concerned and the following elements:  project s deemed to make a substantial contribution to 
social development and which create quality jobs, projects which make an effective contribution to 
modernizing the country's production structure because of the high technology they incorporate, research and development projects, those which fo ster innovation and transfer of technology or 
promote the incorporation of clean technology, in tegrated waste management, energy savings and 
efficient water management. 
 
• Encouraging 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 make 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 
wishing to set up outside the GAMA, the investment requirements are US$100,000 within an industrial park and US$50,000 outside. 
  - Differentiated fiscal incentives
:  Enterprises situated within the GAMA will pay a 
rate of six per cent (6%) of their profits for the purposes of the Income Tax Law for 
the first eight years, and fifteen per cen t (15%) for the following four years.  
Enterprises outside the GAMA will pay zero pe r cent (0%) of their profits for the 
purposes of the Income Tax Law during the firs t six years, five per cent (5%) for the 
next six years, and fifteen per cent (15%) 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  G/SCM/N/211/CRI 
 Page 11 
 
 
  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 situated 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 Law's amendments include a commitment 
by the State to draw up action plans to  create the necessary services, infrastructure 
and operating conditions to encourage the establishment of enterprises in duty-free 
zones and industrial parks, the moderniza tion of those already existing in poles of 
development outside the GAMA.  The Law specifically mentions five poles of 
development to which priority will be gi ven:  Limón, Puntarenas, Brunca Region, 
Guanacaste and Zona Norte. 
 
• Giving 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 reinv estment of profits, costs incurred within or outside 
the country for training Costa Rican personnel or those resident in Costa Rica who are working for the enterprise in the country, as well as for costs incurred within Costa Rica for training in micro, small 
and medium-sized enterprises supplying enterp rises covered by the Duty-Free Zone Regime. 
 
• Including criteria for strengthening links between duty-free zone enterprises and local 
industry (production chains) 
  Enterprises supplying goods to enterprises established in duty-free zones may, in turn, apply 
for the Duty-Free Zone Regime if a significan t proportion of their total sales are to the said 
enterprises, "significant proportion" meaning at l east forty per cent (40%) of their total sales. 
 
 Supplier enterprises meeting this requirement will not have to belong to a sector that is strategic for the country's development or have to be located in an area outside the GAMA.  They may 
be local enterprises engaged in activities in the count ry and do not therefore have to be exempt from, 
or not subject to, income tax.  
• 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. 
 G/SCM/N/211/CRI 
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  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 suspension of all ty pes of taxes, subject to lodgement 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, inst allation, assembly, or after being incorporated 
in sub-assemblies, machinery, transport equipment in general or appliances with a higher degree of 
technological or functional complexity, or after being used for other similar purposes, under the conditions laid down in the regula tions 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 di rect and indirect taxes, meeti ng 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 2009.  
3. Policy objective 
 The Inward Processing Regime is designed to  promote production, employment, and foreign 
and domestic investment, which inevitably cont ributes towards increasing exports and domestic 
consumption.  The conjunction of all these aspect s 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)
17 and amendments thereto.18 
 
• Regulations implementing the General Customs Law, Chapter XIII (Inward 
Processing Regime), Executive Decree No. 25270-H of 28 June 199619, and 
amendments thereto.20 
 
• 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 
                                                      
17 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. 
18 Cf. footnote 4. 
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 Cf. footnote 6.  G/SCM/N/211/CRI 
 Page 13 
 
 
  Costa Rica's notification in document G/SCM/N/71/CRI of 5 March 2002), and 
amendments thereto.21 
 
5. Form of the subsidy 
 The Inward Processing Regime a llows the entry of goods into national customs territory with 
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, 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:  enterpri ses choosing this option may not sell their 
products on the domestic market; 
  (b) re-export and domestic sale option:  und er this option enterprises may sell the goods 
on the domestic market or simply re-export them. 
 
 Enterprises operating under the "domestic sale" option are required to pay the full tax payable 
for the definitive importation of the goods.  Similarl y, 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. 
 
 The obligations for Regime bene ficiaries 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 
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.  
                                                     
 
21 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:  Execu tive 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 attach ed as an Annex to Costa Ri ca's notification in document 
G/SCM/N/146/CRI), Executive Decree No. 34165 of 4 December 2007 (the full text of this reform is attached 
as an Annex to Costa Rica's notification in doc ument G/SCM/N/177/CRI/Rev .1), Executive Decree 
No. 34738-COMEX-H of 29 August 2008 (attached hereto), and Executive Decree No. 35423-COMEX-H of 
7 August 2009 (attached hereto). G/SCM/N/211/CRI 
Page 14  
 
  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 by the enterprise covered by the Regime, the benefits 
granted by this Regime 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 subsidi es, all the beneficiaries under the Inward Processing 
Regime have been notified that the benefits unde r the Regime deemed to be export subsidies will 
remain in effect until 31 December 2015.  9. Trade effects of the subsidy
22 
 At present, there are 145 active enterprises bene fiting under the Inward Processing Regime.  
In 2009, this Regime provided employment for ab out 8,727 people.  Some 159 different products 
were exported under this Regime to 47 countries in 2009.  
Costa Rica:  Direct jobs created by the Inward Processing Regime 
 2007 2008 2009 
Inward processing 11,800 12,375 8,727 
Source :  PROCOMER 
 
 The main destinations for exports under this  Regime include the United States of America, 
Nicaragua and Panama, which account for 44.3 per cent,  9.5 per cent, and 9.4 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, and accordingly represent a very significant source of 
employment for the area.  
Costa Rica:  Total exports a nd Inward Processing exports 
in US$ millions 
 2007 2008 2009 
Inward processing  460.5  360.9  245.4 
Total exports  9,343.1  9,569.7  8,675.6 
Source :  PROCOMER 
 
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 will be granted after the end of calendar year 2015. 
 
                                                      
22 See footnote 11.  G/SCM/N/211/CRI 
 Page 15 
 
 
  (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 au thorities, begun 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 completed its work on amendments  to the Duty-Free Zone Regime, the 
inter-institutional commission will henceforward fo cus on assessing the necessary amendments to the 
Inward Processing Regime and will st art work in the weeks to come. 
 
(c) Legislative and regulatory changes 
 Over the next few months, the inter-ins titutional commission will have to assess the 
legislative and regulatory changes it deems necessary to amend the Inward Processing Regime.  Some 
of the possibilities include amending Chapter VI (Processing Regimes) of the General Customs Law 
(Law No. 7557 of 20 October 1995), and Chapte r XIII (Inward Processing Regime) of the 
Regulations implementing the General Cust oms Law (Executive Decree No. 25270-H of 
28 June 1996), and the Regulations implementin g the Inward Processing and Drawback Regimes 
(Executive Decree No. 26285-H-COMEX of 19 August 1997).  G/SCM/N/211/CRI 
Page 16  
 
  A
MENDMENTS TO ARTICLES 157 AND 166 OF THE REGULATIONS IMPLEMENTING THE GENERAL 
CUSTOMS LAW, EXECUTIVE DECREE NO. 25270-H  OF 14 JULY 1996 
 
No. 35424-H 
 
THE PRESIDENT OF THE REPUBLIC  
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 pursuant to Articles 25, 27(1), and 28.2(b) and 
Article 103(1) of the General Public Administra tion Law, No. 6227 of 2 May 1978, and the General 
Customs Law, No. 7557 of 20 October 1995;  and  
Whereas: 
 
I. The General Customs Law, No. 7557 of 20 October 1996 lays down the basic rules 
for the Inward Processing Regime and the Duty-Free Zone Regime, Regimes that have been regulated by the Executive; 
 
II. The regulatory amendments to the Inwa rd Processing Regime and the Duty-Free 
Zone Regime regarding the cessation of activities by beneficiary enterprises make it 
necessary to adapt the relevant provisions in the Regulations implementing the 
General Customs Law; 
 
III. The legal provisions governing the custom s system must be interpreted in the manner 
that best ensures the development of the Re public's foreign trade, in keeping with the 
social and economic circumstances prevaili ng at the time of such interpretation and 
with other matters of public interest; 
 
IV. For these reasons, it is necessary to ma ke the following amendments to the 
Regulations implementing th e General Customs Law, Executive Decree No. 25270-H 
of 14 June 1996, published in Inser t No. 37 of the Official Journal La Gaceta  No. 123 
of 28 June 1996; 
 
THEREFORE DECREE: 
 
Amendments to Articles 157 and 166 of the Regulations implementing the General Customs 
Law, Executive Decree No. 25270-H of 14 June 1996 
 
Article 1. -  Articles 157 and 166 of the Regulations implementing the General Customs Law, 
Executive Decree No. 25270-H of 14 June 1996, published in Insert No. 37 of La Gaceta  No. 123 of 
28 June 1996, are hereby amended as follows:  
 " Article 157. - Permanent or temp orary cessation of operations.   An inward processing 
enterprise voluntarily applying to cease its ope rations permanently or  temporarily shall 
comply with the procedures laid down in the corresponding rules. 
  If the cessation is permanent, the Directorat e-General of Customs shall issue the decision 
revoking the status of Customs Service A uxiliary, 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." 
  (…)  G/SCM/N/211/CRI 
 Page 17 
 
 
   
 " Article 166. - Permanent or temporary cessation of operations.   A duty-free zone 
enterprise voluntarily applying to cease its ope rations permanently or  temporarily shall 
comply with the procedures laid down in the corresponding rules. 
 
 If the cessation is permanent, the Directorat e-General of Customs shall issue the decision 
revoking the status of Customs Service A uxiliary, 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 Customs Service Auxiliary." 
 
Article 2. -  Within a maximum period of three months from the date on which this Executive Decree 
comes into force, the Directorate-General of Cu stoms shall issue the respective decision revoking the 
status of Customs Service Auxiliary for those enterprises benefiting from the Duty-Free Zone or 
Inward Processing Regimes that have renounced the be nefits of the Regime or for which the Regime 
has been revoked by the administrative body and whic h, on that date, have not received the relevant 
decision revoking their status as a Customs Service Auxiliary. 
  The foregoing shall without prejudice to the customs authority's power to initiate administrative proceedings as a result of the liabi lity incurred by the en terprise's activities as a 
Customs Service Auxiliary.  
Article 3. -  These provisions shall take effect as from the date of their publication in the Official 
Journal La Gaceta . 
  Done at San José on the seventh day of the month of August of the year two thousand and nine. 
 G/SCM/N/211/CRI 
Page 18  
 
  A
MENDMENTS TO THE REGULATIONS IMPLEMENTING THE INWARD PROCESSING REGIME  
 
No. 34738-COMEX-H 
 
THE PRESIDENT OF THE REPUBLIC  
THE MINISTER A.I.  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 Agency 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, delegating authority to the Executive for the requisite Regulations. 
 
II. The growth of globalization calls for le gislation to boost the participation of the 
Costa Rican economy in world markets a nd to promote the competitiveness of 
enterprises covered by the Inward Processi ng Regime, without prejudice to efficient 
and transparent customs controls. 
 
III. It being the ongoing responsibility of the State to adapt the legislation in force to 
social, technological and economic changes, th ere is a need to adapt the Regulations 
implementing the Inward Processing Regime a nd incorporate into them the elements 
necessary to adjust them to the prevailing circumstances, within the framework of the 
law. 
 
IV. The legal provisions governing the custom s system must be interpreted in the manner 
that best ensures the development of the Re public's foreign trade, in keeping with the 
social and economic circumstances prevaili ng at the time of such interpretation and 
with other matters of public interest, in the light of the purposes of these provisions; 
 
V. For these reasons, it is necessary to ma ke the following amendments to the 
Regulations implementing the Inward Processing Regime, Executive Decree 
No. 34165-H-COMEX of 4 December 2007, published in the Official Journal 
La Gaceta  No. 247 of 24 December 2007. 
 
THEREFORE DECREE: 
 
Amendments to Articles 3, 8, 12, 16, 20, 21, 22, 38 of the Regulations Implementing the Inward 
Processing Regime, Executive Decree No . 34165-H-COMEX of 4 December 2007, and 
Addition of New Articles 27 bis and 33 bis 
 
Article 1. -  Articles 3, 8, 12, 16, 20, 21, 22 and 38 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: 
  G/SCM/N/211/CRI 
 Page 19 
 
 
  Accessories:   Devices or accessories fitted to equi pment or machinery to assist or 
enhance production operations and used for the satisfactory operation of the 
machinery or equipment in which they are incorporated. 
 
Customs Control Office:   With respect to Customs Service Auxiliaries, that customs 
office responsible for monitoring custom s transactions involving the Auxiliary.  
Unless otherwise provided, this shall be unde rstood to mean the customs office with 
territorial competence in the locality wher e the customs transaction is effected. 
 
Auxiliary:   Customs Service Auxiliary. 
 
Beneficiary:  Natural or legal person granted au thorization to operate under the 
Inward Processing Regime. 
 
Warehouse:   Physical installations of the beneficiary intended solely for storing 
goods covered by the Regime and previous ly authorized by PROCOMER and the 
Directorate. 
 
CAUCA:   Second Protocol Amending the Cent ral American Uniform Customs Code. 
 
COMEX:   Ministry of Foreign Trade. 
 
Assembly:  Combination of sub-assemblies, parts or goods, which has a specific 
function within the product. 
 
Waste:   Goods remaining from the production process. 
 
Directorate:   Directorate-General of Customs. 
 
Packing, wrapping:  Items designed to facilitate the transport and protection 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 with characteristics different 
from its component parts. 
 
Containers:  Items designed to contain products of any kind. 
 
Management Unit:  Operations Management Unit of the Foreign Trade Promotion 
Agency of Costa Rica. 
 
Import:  Import of goods from abroad that co mplies with the formalities and the 
legal, regulatory and administrative requi rements for use and final consumption 
within the national customs territory. 
 
Commencement of operations:  Processes of installation, production, re-export 
and/or sale of the production output in the domestic market. 
 
Inward customs clearance of goods:  Entry of goods into the Inward Processing 
Regime by beneficiary enterprises.  En try under the Regime does not constitute 
import. 
 
Law:  General Customs Law. G/SCM/N/211/CRI 
Page 20  
 
   
Procedure manual:  Policies and guidelines issued by the 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 incorporated in the end product by means of 
a production process. 
 
Wastage:  The proportion by which inputs are diminished 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 Directorat e-General of Customs 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 under gone one of the processes 
envisaged in Article 179 of the General Cust oms Law, constitute an input for another 
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:  Exportation, once the formalities and obligations imposed by 
a customs procedure have been fulfilled, of  goods previously inward-cleared by a 
beneficiary of the Inward Processing Regime, without their having been definitively imported. 
  G/SCM/N/211/CRI 
 Page 21 
 
 
  Indirect re-exportation:  Exportation, once the formalities and obligations imposed 
by a customs procedure have been fulfilled,  of goods previously inward-cleared by a 
beneficiary of the Inward Processing Regime  through another beneficiary of the same 
Regime, without their having been definitively imported. 
 
Regime:  The Inward Processing Regime. 
 
Repair:  Remedying deterioration in order to restore the satisfactory operation 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 from their being fitted together, 
or which form part of an assembly. 
 
By-products:  Goods produced as ancillary outputs from 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 quantity and weight of raw materials. 
 
Sales on the domestic market:  Sales made by enterprises authorized under the 
re-exportation and domestic sale modality on na tional customs territory of finished 
products that have undergone one of the processes envisaged in Article 179 of the 
General Customs Law. 
 
Economic relationship:  Legal transactions between two enterprises subject to the 
Inward Processing Regime that generate th e transfer of goods imported under that 
Regime that have undergone a specific pro cess, in accordance with Article 179 of the 
General Customs Law, so that the in termediate product resulting therefrom 
constitutes an input for the beneficiary ente rprise to which it is transferred.  The 
Foreign Trade Promotion Agency of Costa Rica shall verify the existence of an 
economic relationship between enterp rises operating under this Regime." 
 
 "Article 8. - Application for admission to the Regime and the status of Customs Service 
Auxiliary.  Any enterprise interested in operating 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: 
 
 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; G/SCM/N/211/CRI 
Page 22  
 
   
(d) address of the installations; 
 
(e) ownership of the property:  indicat e 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, according to  the tariff heading 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 prohibited) or of 
components, assemblies or sub-assemb lies used exclusively in the 
defence industry; 
 
(ii) the enterprise is registered in the 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 So cial 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 granti ng of the Inward Processing Regime: 
 
(a) Products to be manufactured.  The description may be generic, and it will be 
sufficient to give that corresponding to the tariff heading, which should be at least four-digit; 
 
(b) products to be sold on the domestic market, where applicable; 
 
(c) list of the machinery, equipment and spare parts which will enter under either 
Regime modality; 
 
(d) production process by product description, including the input-output ratio 
(production standards).  If the Regime beneficiary decides to produce goods 
of the same tariff heading for which it did not submit information to PROCOMER with the application, it shall submit it and wait for it to be approved by PROCOMER before starting to export the goods in question.  
PROCOMER shall have a maximum of fi ve working days within which to 
reach a decision, which it shall immediately make known to the relevant 
Customs Control Office.  The Customs Control Office may verify, by means of post-facto controls, that the information supplied is correct. 
  G/SCM/N/211/CRI 
 Page 23 
 
 
   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 ap propriate 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 docum ents 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; 
 
(b) special power of attorney if the app lication 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 acquisition 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 member who will deal directly with the National Customs Service; 
 
(d) notarized copy of the enterprise's legal certificate; 
 
(e) if the applicant is a natural person,  the following must also be included: 
 
(i) Notarized copy of the front and back of the applicant's ID document; 
 
(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) certificate from the Offenders Register (to be procured directly from 
the entity responsible for labour matters)." 
 
 " Article 12. - Other authorization applications.   Within a period of not more than five 
working days, the Management Unit shall pr ocess the types of application listed below 
directly, without any requirement for author ization from COMEX, except where exceptional 
or especially complex issues require the involvement of COMEX: 
 
 (a) Application for inward customs clearance of goods; 
  (b) extension of the goods needed for prod uction, in accordance with Articles 15 and 18 
of these Regulations, as well as changes in the authorized domestic sales percentage; 
 G/SCM/N/211/CRI 
Page 24  
 
   (c) extension for new products to be manufac tured and re-exported, within the authorized 
tariff heading.  The application relating to this authorization shall include any 
additional machinery, equipment or spar e parts to be used in making the new 
products; 
 
 (d) changes in the percentages of wastage and residue or the residual tolerance of goods 
entered under the Regime; 
  (e) application for the approval of new plants  or warehouses.  These installations shall be 
approved by the 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) application for the loan of machin ery and equipment.  The inward-clearance 
formalities shall be carried out directly at the Customs Control Office. 
  The Management Unit shall inform the Cu stoms Control Office and the Registration 
Department of these arrangements immediately, so that the appropriate checks can be carried out." 
  " Article 16. - Length of stay.   The permitted length of stay for goods entering under this 
modality shall be as follows: 
 
(a) Twelve months for semi-manufactur ed products 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 subparagr aph.  This period 
may be extended for identical periods, subject to the provision of a new 
customs lien and before the expiry of the lien originally granted, for those 
goods which so require.  The foregoing without prejudice to any actions taken by the competent authorities of th e Regime in the event of failure to 
comply with its requirements. 
 
The list of depreciation methods and percentag es contained in the Regulations implementing 
the Income Tax Law shall be used for the pur pose of applying the appropriate depreciation 
percentages." 
  " Article 20. - Domestic sale.   To sell products on the domestic market, the beneficiary of this 
modality shall pay, at the time of inward clearance into the Regime, the portion of the duties 
and taxes corresponding to the goods envisaged in Article 18 of these Regulations to be used 
in manufacturing the final product, in acco rdance with the domestic sale percentage 
previously authorized by COMEX for the current financial year. 
 
For these purposes, prior to the commencement of domestic sales by the beneficiary, 
PROCOMER shall inform the Customs Control O ffice and the Directorate of the authorized 
percentage of sales on the domestic market requ ested by the enterprise, together with the 
f.o.b. value in Central American pesos to wh ich that percentage corresponds, so that the 
customs office may set up the required monitoring arrangements. 
  G/SCM/N/211/CRI 
 Page 25 
 
 
  If COMEX authorizes the beneficiary to sell on th e 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, th e enterprise shall first itself assess and pay the 
tax corresponding to such difference. 
 
If the beneficiary sells on the domestic market  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 the time of the domestic sale it shall pay the 
duties and taxes owed, in accordan ce with Article 55 of the General Customs Law, without 
prejudice to any other penalty applicable. 
 
The beneficiary enterprise shall calculate th e proportion of goods brought into national 
customs territory according to one  of the two formulas below: 
 
(A) VALUE DS (Domestic sales)  
 VALUE TS (Total sales) X 100 = Percentage of domestic sales 
 
(B) VALUE DS (Domestic sales)  
 VOLUME TS (Total sales) X 100 = Percentage of domestic 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 substantiated by th e 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. 
 
 The beneficiary enterprise shall indicate in its  annual operating report the percentage and the 
final amount in colons of the total and local sal es made during the period.  If the report shows 
that the beneficiary sold on the domestic market  a percentage higher than that authorized and 
did not pay the corresponding duties and taxes at the time of sale on the domestic market, 
PROCOMER shall inform the Directorate and the Customs Control Office in order that they 
may initiate the ordinary administrative and penalty proceedings applicable and shall 
immediately advise the enterprise in order th at it may proceed with the payment of the 
relevant duties and taxes plus interest. 
 
 If the beneficiary enterprise can prove to COME X's satisfaction that the tax charge on the raw 
materials incorporated in some of its final produc ts is greater than that paid by that final 
product when coming from abroad, it may request to be authorized to pay the taxes on the 
final goods entering the domestic market at the time of definitive importation of those goods.  
In this case, the provisions of the first paragra ph of this article shall only apply to the inward 
clearance of machinery and equipment into th e Regime.  The request shall be submitted to 
PROCOMER, which shall deal with it in acco rdance with the procedure laid down in 
Article 9 of these Regulations.  If the request  is approved, the taxes on the final goods 
inward-cleared onto the domestic market shall be calculated on the basis of their value for 
customs purposes.  If the natural or legal pe rson purchasing the said products qualifies for 
exemptions for such purchases, it may take advantage of them. 
 G/SCM/N/211/CRI 
Page 26  
 
   For all purposes, PROCOMER, pursuant to Artic le 2 of these Regulations, shall notify the 
Customs Control Office of the percentage of  sales made on the domestic market by the 
beneficiary, according to the details it provided in its Regime application.  This percentage 
shall be verified at least once a year by PROC OMER, on the basis of an official certificate to 
be provided by the beneficiary enterprise to th e Operations Management Unit together with 
its annual operating report.  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. 
 
At the request of the beneficiary and in exceptional cases, PROCOMER, subject to 
COMEX's approval, shall inform the Customs C ontrol Office of those sp ecial inputs used in 
products intended one hundred per cent (100 per cent) for export, in order that they may be entered with one hundred per cent (100 per cent)  suspension of payment of customs duties.  
For this purpose, the beneficiary shall keep r ecords of the inputs in question so that the 
customs authority can carry out the appropriate checks. 
 
In the case of locally purchased 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 Directorate-General of Taxation shall be applied." 
  " Article 21. - Additional obligations.   In addition to the obliga tions 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 the ti me-limit set down in Article 182(a) of 
the General Customs Law; 
 
(c) to keep goods inward-cleared under the Regime solely in the principal plant, 
secondary plants and/or warehouses previously authorized by PROCOMER 
and approved by the Directorate for each beneficiary, which shall be regarded 
as a customs operation zone; 
 
(d) to keep a satisfactory, up-to-date r ecord of the operations carried out under 
the Regime, according to the modality approved; 
 
(e) to comply with labour provisions  and pay employer's contributions; 
 
(f) to keep separate inventory records, using the FIFO method, along with all 
accounting and operating records, for goods entering the country, according 
to the end use of the final product; 
 
(g) to carry out its customs transactions using the means and procedures 
specified by the Directorate for the Regime; 
 
(h) to comply with the customs legisla tion, these Regulations and other related 
rules applicable to the Regime; 
 
(i) to submit to PROCOMER, on the forms it provides, an annual operating 
report containing at least the following information: 
  G/SCM/N/211/CRI 
 Page 27 
 
 
  (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; 
 
(ii) use or consumption of spare parts, accessories and the like, and 
balances in stock; 
 
(iii) movements of machinery and equipment; 
 
(iv) photocopy of the sworn income tax declaration; 
 
(v) certificate of net sales by market (domestic or foreign) in terms of 
value and quantity, issued by a certified public accountant; 
 
(vi) profit-and-loss account, balance sheet, pre-closing trial balance, in 
Spanish and in colons; 
 
(vii) in the case of enterprises, legal personality and equity capital 
structure; 
 
(viii) a certificate issued by a co mpetent professional person or body 
independent of the enterprise concer ning the percentage of wastage, 
residue, waste and residue toleran ce of the production process, for 
each type of goods entered under the Regime; 
 
(ix) document proving that taxes on machinery, equipment and goods 
have been paid, in the event of the domestic sale percentage 
authorized for the financial year in question having been exceeded. 
 
Within the four months following the end of the ordinary financial year, or a non-standard financial year as authorized by the Ministry of  Finance for a specific enterprise, beneficiaries 
shall provide PROCOMER with an annual report on their activities during the financial year 
that has just finished, containing and providing the information specified in the form drawn 
up for this purpose by PROCOMER and duly published in the Official Journal La Gaceta . 
 
If the report is not submitted or is submitted in an incomplete form, PROCOMER shall give the beneficiary a deadline of 15 working days, calculated from the day following the 
notification to this effect, in which to submit the annual report, remedy the defects or submit 
the missing documents, whichever applies.  If the report is not submitted or the defects not 
remedied or the missing documents not submitted during 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 time-li mit prescribed in the preceding paragraphs, or 
if it is found that the report has been subm itted with substantive defects or omissions and 
these have not been remedied within the tim e-limit specified by PROCOMER in accordance 
with the preceding paragraph, PROCOMER sh all temporarily suspend the enterprise in 
breach from performance of any authorized actions regarding activities covered by the 
Regime, and on the same day the relevant official letter is sent shall notify the 
Directorate-General of Customs, the competent Customs Control Office, the 
Directorate-General of Finance and the mana gement of the industrial park where the 
enterprise is located accordingly, to ensure  the concomitant suspension of all Regime G/SCM/N/211/CRI 
Page 28  
 
  transactions 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 an y revocation of the Regime applicable pursuant 
to the Law, and on the basis of a recommendation, with supporting arguments, forwarded to 
COMEX by PROCOMER. 
 
PROCOMER shall forward a copy of the annual report to the Central Bank of Costa Rica for 
the purpose of compiling the relevant statistics." 
 
 " Article 22. - Precautionary suspension.   As a precautionary measure, COMEX shall 
automatically suspend any beneficiary from Regi me benefits if it has not submitted its annual 
operating report within the said time-limit of four months. 
 
Such suspension shall also be ordered if the customs office notifies COMEX that the 
beneficiary has failed to lodge the customs lien deed, duly entered in the Register of Liens, 
within the time-limit laid down in Article 41 of these Regulations. 
 
The precautionary suspension shall apply to the importation of raw materials under the 
Inward Processing Regime and shall be communi cated to the Directorate not later than the 
working day following its entry into effect, prefer ably 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 rectif ied.  The foregoing shall be without prejudice 
to the provisions of Article 49 of these Re gulations.  Moreover, neither permits nor 
authorizations may be processed by PROCOMER." 
 
 " 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 staff training shall not have  to comply with this requirement.  If the 
beneficiary so requests, the customs authority may place goods consisting of samples, models, 
manuals, patterns and catalogu es under another customs Regime.  If it is required to extend 
the customs lien, this shall be done using the amount originally determined or the 
corresponding depreciation percentages may be  applied in accordance with the list of 
depreciation methods and percentages contained in the Regulations implementing the Income 
Tax Law, subject to the lodgement with the Cu stoms Control Office of a certificate issued by 
a certified public accountant for this purpose." 
 Article 2. -  The following new Articles 27 bis and 33 bis are hereby 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: 
 
 " Article 27 bis. - Waste of goods subject to special regulations.   In the case of goods 
inward-cleared under the Regime which require special processe s 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 ope ration, if it is unable to do it itself or if the 
municipality does not have the proper resources or methods to dispose of the materials 
satisfactorily. 
 
Notification to the Customs authority and its pa rticipation shall comply with the regulations 
laid down in Article 27 of these Regulations."  G/SCM/N/211/CRI 
 Page 29 
 
 
   
"Article 33 bis. - Inward customs clearance and re-ex port by subcontracted enterprises.   
Regime beneficiary enterprises which subcontract  with other Regime beneficiaries or with 
any natural or legal person est ablished within national customs territory may clear or 
re-export their goods to or from the installations of the subcontracted enterprise. 
 
For this purpose, the subcontracting enterp rise shall forward the respective customs 
declarations to the Customs Control Office, indicating the name and location of the subcontracted enterprise and that the goods will be imported into or exported from these 
installations.  In addition, for all purposes, it shall be responsible for complying with and 
ensuring proper application of the relevant rul es and procedures.  For this purpose, it shall be 
directly responsible for the communications established which, inter alia , permit the 
supervision and monitoring of entry, exit, tran sfer and registration in the inventory of the 
goods.  The foregoing shall be in close coor dination with the subcontracted enterprise. 
 
In order to enable the beneficiary enterprises to  clear or re-export goods from the installations 
of the subcontracted enterprise, using the means specified, they shall notify PROCOMER, 
their Customs Control Office and that of the s ubcontracted enterprise in advance, indicating 
the following: 
 
(a) The name of the subcontracted enterprise; 
 
(b) the location of the installations of  the subcontracted enterprise and its 
Customs Control Office; 
 
(c) an indication that henceforward the goods that are the subject of the 
subcontracting arrangement will be  exported from the aforementioned 
installations. 
 
If the beneficiary enterprise takes any action that fails to comply with the foregoing 
provisions, the Customs authority shall initiate the applicable penalty procedures." 
 
Article 3. -  These provisions shall take effect as from the date of their publication in the Official 
Journal La Gaceta . 
  Done at San Marcos de Tarazá n on the twenty ninth day of the month of August of the year 
two thousand and eight. 
 G/SCM/N/211/CRI 
Page 30  
 
  A
MENDMENTS TO EXECUTIVE DECREE NO. 34165  OF 4 DECEMBER 2007  - 
REGULATIONS IMPLEMENTING THE INWARD PROCESSING REGIME  
 
No. 35423-COMEX-H 
 
THE PRESIDENT OF THE REPUBLIC  
AND THE MINISTERS OF FOREIGN TRADE AND 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 Agency 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, delegating authority to the Executive for the requisite Regulations. 
 
II. It is necessary to adapt the regula tions for the Inward Processing Regime to 
prevailing circumstances, within  the framework of the law. 
 
III. The legal provisions governing the custom s system must be interpreted in the manner 
that best ensures the development of the Re public's foreign trade, in keeping with the 
social and economic circumstances prevaili ng at the time of such interpretation and 
with other matters of public interest, in the light of the purposes of these provisions; 
 
IV. For these reasons, it is necessary to ma ke the following amendments to the 
Regulations implementing the Inward Processing Regime, Executive Decree No. 34165-H-COMEX of 4 December 2007, published in the Official Journal 
La Gaceta  No. 247 of 24 December 2007. 
 
THEREFORE DECREE: 
 
Amendments to Articles 3, 12, 20, 26, 27 bis, 49, 50, 51, 52 and 53 of the Regulations 
Implementing the Inward Processing Regime, Executive Decree 
No. 34165-H-COMEX of 4 December 2007 and Addition of 
New Articles 12 bis, 26 bis and 54, Chapter XI 
and a Single Transitional Provision 
 
Article 1. - Articles 3, 12, 20, 26, 27 bis, 49, 50, 51, 52 and 53 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 Inwa rd 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 for the satisfactory operation of the 
machinery or equipment in which they are incorporated. 
  G/SCM/N/211/CRI 
 Page 31 
 
 
  Customs Control Office:  With respect to Customs Service Auxiliaries, that customs 
office responsible for monitoring custom s transactions involving the Auxiliary.  
Unless otherwise provided, this shall be unde rstood to mean the customs office with 
territorial competence in the locality wher e 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 areas 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 attributed to the 
beneficiary enterprise shall be the same. 
 
Beneficiary:  Natural or legal person granted au thorization to operate under the 
Inward Processing Regime. 
 
Warehouse:  Physical installations of the beneficiary intended solely for storing 
goods covered by the Regime and previous ly authorized by PROCOMER and the 
Directorate. 
 
CAUCA:  Second Protocol Amending the Centra l American Uniform Customs Code. 
 
COMEX:  Ministry of Foreign Trade. 
 
Assembly:  Combination of sub-assemblies, parts or goods, which has a specific 
function within the product. 
 
Freight consolidation process.  The freight consolidation process consists of the 
packing, packaging, 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 altogether or 
because the area of one or more  facilities has been reduced. 
 
Waste:  Goods remaining from the production process. 
 
Directorate:  Directorate-General of Customs. 
 
Packing, wrapping:  Items designed to facilitate the transport and protection 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 with characteristics different 
from its component parts. 
 
Containers:  Items designed to contain products of any kind. 
 
Management Unit:  Operations Management Unit of the Foreign Trade Promotion 
Agency of Costa Rica. 
 G/SCM/N/211/CRI 
Page 32  
 
  Approval of areas:  The increase in the area prev iously authorized for the 
beneficiary, either because one or more of the previously authorized facilities has 
been increased or extended. 
 
Import:  Import of goods from abroad that co mplies with the formalities and the 
legal, regulatory and administrative requi rements for use and final consumption 
within the national customs territory. 
 
Commencement of operations:  Processes of installation, production, re-export 
and/or sale of the production output in the domestic market. 
 
Inward customs clearance of goods:  Entry of goods into the Inward Processing 
Regime by beneficiary enterprises.  En try under the Regime does not constitute 
import. 
 
Increase in area:  The increase in the area previously authorized for the Regime 
beneficiary enterprise provided that the new ar eas do not adjoin the previous area.  In 
such cases, the Directorate shall give the new areas a new location code. 
 
Law:  General Customs Law. 
 
Procedure manual:  Policies and guidelines issued by the 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 incorporated in the end product by means of 
a production process. 
 
Wastage:  The proportion by which inputs are diminished 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 Directorat e-General of Customs 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.  G/SCM/N/211/CRI 
 Page 33 
 
 
   
PROCOMER:  Foreign Trade Promotion Agency of Costa Rica. 
 
Intermediate product:  Goods which, having under gone one of the processes 
envisaged in Article 179 of the General Cust oms Law, constitute an input for another 
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:  Exportation, once the formalities and obligations imposed by 
a customs procedure have been fulfilled, of  goods previously inward-cleared by a 
beneficiary of the Inward Processing Regime, without their having been definitively imported. 
 
Indirect re-exportation:  Exportation, once the formalities and obligations imposed 
by a customs procedure have been fulfilled,  of goods previously inward-cleared by a 
beneficiary of the Inward Processing Regime  through another beneficiary of the same 
Regime, without their having been definitively imported. 
 
Regime:  The Inward Processing Regime. 
 
Repair:  Remedying deterioration in order to restore the satisfactory operation 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 from their being fitted together, 
or which form part of an assembly. 
 
By-products:  Goods produced as ancillary outputs from 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 quantity and weight of raw 
materials. 
 
Sales on the domestic market:  Sales made by enterprises authorized under the 
re-exportation and domestic sale modality on na tional customs territory of finished 
products that have undergone one of the processes envisaged in Article 179 of the 
General Customs Law. 
 
Economic relationship:  Legal transactions between two enterprises subject to the 
Inward Processing Regime that generate th e transfer of goods imported under that 
Regime that have undergone a specific pro cess, in accordance with Article 179 of the G/SCM/N/211/CRI 
Page 34  
 
  General Customs Law, so that the in termediate product resulting therefrom 
constitutes an input for the beneficiary ente rprise to which it is transferred.  The 
Foreign Trade Promotion Agency of Costa Rica shall verify the existence of an economic relationship between enterp rises operating under this Regime." 
 
 " Article 12. - Other authorization applications.   Within a period of not more than 
five working days, the Management Unit shall process the types of application listed below 
directly, without any requirement for author ization from COMEX, except where exceptional 
or especially complex issues require the involvement of COMEX: 
 
(a) Application for inward customs clearance of goods; 
 
(b) extension of the goods needed for pr oduction, in accordance with Articles 15 
and 18 of these Regulations, as well as changes in the authorized domestic sales percentage; 
 
(c) extension for new products to be ma nufactured and re-exported, within the 
authorized tariff heading.  The application relating to this authorization shall include any additional machinery, equipm ent or spare parts to be used in 
making the new products; 
 
(d) changes in the percentages of wastage and residue or the residual tolerance of 
goods entered under the Regime; 
 
(e) application for the transfer of fac ilities, approval and cancellation of approval 
for secondary plants or warehouses, eith er because of increase or extension.  
These installations shall be approved by the 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) application for the loan of machiner y and equipment.  The inward-clearance 
formalities shall be carried out directly at the Customs Control Office; 
 
(j) change in trade name or transformation of the company in the terms laid 
down in the Commercial Code. 
  The Management Unit shall inform the Cu stoms Control Office and the Registration 
Department of these arrangements immediately, so that the appropriate checks can be carried 
out." 
  " 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 sale s by the beneficiary, PROCOMER shall 
inform the Customs Control Office and the Di rectorate of the authorized percentage 
of sales on the domestic market requested by th e enterprise.  This percentage shall be  G/SCM/N/211/CRI 
 Page 35 
 
 
  verified at least once a year by PROCOMER, on the basis of an official certificate to 
be provided by the beneficiary enterprise to  the Operations Management Unit together 
with its annual operating report, 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 COMEX authorizes the beneficiary to sell 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 corresponding to such difference. 
 
If the beneficiary sells on the domestic market 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 authori zed, then at the time of the domestic sale it 
shall pay the duties and taxes owed, in acco rdance with Article 55 of the General 
Customs Law, without prejudice to any other penalty applicable. 
 
The beneficiary enterprise shall indicate in  its annual operating report the percentage 
and final amount in colons of the total and domestic 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 verify whether the corresponding taxes have been paid. 
 
 II. Method of calculating sales on the domestic market 
 
The beneficiary enterprise shall calculate the proportion 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 enterprise and shall be indicated when 
submitting the application. 
 
The tax payable on machinery, equipment a nd raw materials shall be calculated as 
follows: 
 
[TT (Total Tax)] x [percentage of domestic sales] = Tax payable. 
 
 III. Form of payment 
 
Beneficiaries, 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 customs clearance, pay the share of  the taxes corresponding to the goods 
covered by Article 18 of these Regulations  and to be used to manufacture the 
final product, in accordance with the pe rcentage of domestic sale previously 
authorized by COMEX for the current financial year. 
 G/SCM/N/211/CRI 
Page 36  
 
  (b) Payment at the time of domestic sale 
 
Beneficiaries opting for this form of payment shall, at the time 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 time of inward customs clearance 
of the machinery and equipment under th e Regime, pay the relevant share 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%) for export with suspension of payment of all customs duties provided that the 
inward clearance of  these inputs is the s ubject of a separate customs declaration. 
 
 V. Purchase with exemption 
 
If beneficiaries make domestic sales to natu ral 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 material s which have been incorporated in the 
final product and on which internal taxes ar e payable, the procedure laid down for this 
purpose by the Directorate-General of Taxation shall be applied." 
  " Article 26. - Containers, packaging and wrapping.  At any time, Regime beneficiaries 
may freely dispose of containers, packaging and wrapping used in transporting raw materials, 
goods, machinery and equipment purchased under the Regime. 
 
When such goods are entered for home use or re-exported, the corresponding customs 
declarations shall be made. 
 
When such goods are donated, destroyed or recycl ed, Regime beneficiaries shall record such 
operations in their records in such a way that  the customs authority may at any time verify 
their destination without the need for the cust oms authority to be present when the goods are 
donated, destroyed or recycled." 
  " Article 27 bis. - Waste of goods subject to special regulations.   In the case of goods 
inward-cleared under the Regime which require special processe s 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 th is operation, if it does not have the proper 
resources or methods to dispose of the materials. 
 
Notification to the Customs authority and its pa rticipation shall comply with the regulations 
laid down in Article 27 of these Regulations." 
  " Article 49. - Cancellation of the Regime.  COMEX shall act to cancel Regime status where 
the beneficiary has committed any of the following breaches: 
  G/SCM/N/211/CRI 
 Page 37 
 
 
  (a) Fails to commence operations within the time-limit set down in 
Article 182(a) of the Law; 
 
(b) after having commenced the productio n process, discontinues it for a period 
of more than eight months, without good cause; 
 
(c) suddenly ceases operations, leading to labour problems or other impacts on 
law and order; 
 
(d) makes improper use of machinery, equipment and raw materials of any kind 
which have entered under the Regime , without prejudice to any other 
measures applicable; 
 
(e) has been suspended on two or more occasions within a period of 12 months; 
 
(f) fails to submit the report pursuant to Article 21(i) of these Regulations within 
six months of the end of the authorized financial year; 
 
(g) supplies false data in the applicati on for admission to the Regime, the annual 
operating report or in any other information it may be asked to provide. 
 
To this end, the Management Unit, on becomi ng aware of the situation, shall gather the 
required information, investigate the matter,  and forward a recommendation to COMEX for 
initiation of the relevant administrative procedure." 
  " Article 50. - Request to relinquish the Regime.   If a beneficiary enterprise intends to 
relinquish Regime status, it shall first of all pay the corresponding taxes to the Ministry of 
Finance in accordance with the provisions below." 
  " Article 51. - 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 approval of the entry of goods by the enterprise. 
 
On the basis of the certificate mentioned in the previous paragraph, the beneficiary enterprise 
shall identify the goods that will be transferred,  definitively re-exported or imported.  If there 
are goods definitively re-exported or imported, af ter having drawn up the inventory, it shall 
provide the documents that demonstrate th e performance of such operations, where 
applicable. 
 
The Customs Control Office shall undertake a phy sical inspection of the inventory of goods 
supplied by the enterprise within ten working da ys of the date of receipt of the complete 
information.  For all purposes, the date of cessa tion of operations shall mean the time at which 
the Customs Control Office undertook the aforementioned inspection and issued the corresponding report.  Following completion of the foregoing, the beneficiary enterprise shall 
complete the relevant customs declarations acco rding to the destination of the goods within 
15 working days of the issue of the inspection report by the Customs Control Office and shall 
inform the latter of the operations. 
 
Likewise, the Customs Control Office shall certif y that the enterprise relinquishing its status 
has no pending tax/customs obligations, that the aforementioned inventory has been drawn up and that the installation have been duly inspected .  Within five working days, it shall transmit G/SCM/N/211/CRI 
Page 38  
 
  the said certificate to PROCOMER, with copies to the Directorate and the beneficiary 
enterprise." 
  " Article 52. - Procedure for requesting relinquishment from PROCOMER.  Following 
submission of the relevant documentation to the Ministry of Finance, the beneficiary 
enterprise shall immediately subm it a request to PROCOMER for relinquishment of its status, 
accompanied by the following documents: 
 
(a) A copy of the notice published in  a national newspaper announcing the 
enterprise's intention to relinquish the Regime; 
 
(b) copies of all the documents submitted to the Ministry of Finance by the 
beneficiary enterprise, with the corresponding receipt stamp. 
  " Article 53. - Relinquishment procedure at PROCOMER.   After PROCOMER has 
received the certificate issued by the Ministry of  Finance, referred to in Article 51 above, and 
compliance with the requirements set out in the preceding Article have been verified, PROCOMER shall send a report to the Minist er of Foreign Trade, who decides on the 
relinquishment request. 
 
After notification of acceptance of the request for relinquishment, all the Regime's benefits 
shall become null and void. PROCOMER sha ll inform the Directorate and the Customs 
Control Office of the acceptance for appropriate action. 
 
Following receipt of the communication accepting the request for 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 administ rative proceedings subsequently as a result of 
the liability incurred by the enterprise's activities as a Customs Service Auxiliary." 
 Article 2. - The following new Articles 12 bis, 26 bis and 54 are hereby 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: 
  " Article 12 bis. - Operations authorized in warehouses, secondary plants and use of 
customs declarations.   Any entry, movement or exit of goods involving a customs 
transaction shall require the submission or transm ission of the customs declaration, except for 
donations, destruction, purchase of services and movement of goods from the principal plant 
to the secondary plant or warehouse if both are located within the same duty-free zone park. 
 
Enterprises may directly effect inward customs clearance, import and/or export of goods under the Regime, sell on the domestic market a nd complete customs formalities authorized 
for the principal plant from a secondary plant and shall formally notify this to the Customs 
Control Office. 
 
Likewise, goods may be inward cleared, im ported or exported under the Regime from a 
warehouse.  If the warehouse is located under a ju risdiction different to that of the principal 
plant, customs control shall be carried out by  the Customs office with jurisdiction for the 
location of the warehouse. 
 
The Customs Control Office shall verify the reco rds and controls of the transactions carried 
out by the secondary plant or warehouse, whic h shall be kept by the beneficiary.  The  G/SCM/N/211/CRI 
 Page 39 
 
 
  secondary plant or warehouse shall comply w ith any additional controls set down in the 
General Customs Law and its implementing Regulations." 
  " Article 26 bis. - Wastage, residue and waste.  At any time, Regime beneficiaries may 
freely enter for home use, re-export, destroy, donate, recycle or dispose of the residue and 
waste resulting from their production process. 
 
For these purposes, they need only submit to PROCOMER, together with the annual 
operating report, a breakdown containing the descr iption of the goods and the percentage and 
use accorded to them, so that PROCOMER may carry out a documentary check of the 
information, in accordance with the percentag es of wastage, residue or waste approved. 
 
In the exercise of its powers, the Directorat e-General of Customs may carry out periodic 
audits, for which purpose it may request the reports submitted to PROCOMER by the beneficiary enterprises." 
 
 " Article 54. - Relinquishment of the Regime.   If the Regime is relinquished, COMEX shall 
notify PROCOMER, the Customs Control Office and the Directorate of the relevant final decision. 
 
The Customs Control Office, by means of a physical inspection, shall verify the inventory of 
goods entered by the enterprise under the Regime  where applicable, within a maximum period 
of 15 working days of the date of notification of the administrative decision on relinquishment of the Regime.  The foregoing shall be for the purpose of taking the corresponding administrative measures to protect the interests of the revenue authorities. 
 
As of the notification of the decision by whic h the enterprise relinquishes the Regime, all the 
Regime's benefits shall cease and the Customs Control Office and the Directorate shall be notified accordingly for appropriate action.  After the decision has been notified, only 
completion of any pending transaction concer ning the payment of taxes on goods purchased 
under the Regime, their re-export or sale under speci al regimes shall be pe rmitted and shall be 
completed within 15 days following notification of the said decision. 
 
Following receipt of the decision revoking th e Regime, the Directorate shall enter the 
revocation in its computer systems, giving the enterprise an opportunity to complete its transactions over a period of 15 days from the date of notification of the decision, in 
accordance with the preceding paragraph.  For these purposes, the Directorate shall issue a 
decision revoking the relinquishing enterprise's status as a Custom s Service Auxiliary, 
without prejudice to the Customs Authority's power to initiate administrative proceedings 
subsequently as a result of the liability incurre d by the enterprise's activities as a Customs 
Service Auxiliary." 
 Article 3. -  The following new Chapter XI, entitled "Other  Provisions" is hereby 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:  
"CHAPTER XI 
 
Other Provisions 
 
 " Article 55. - Applications for mergers.   Regime beneficiary enterprises that merge shall 
notify PROCOMER and the Directorate accordingly so that they can update the corresponding records. G/SCM/N/211/CRI 
Page 40  
 
   
For these purposes, the beneficiary enterpri se shall submit the following documents to 
PROCOMER and the Directorate, within a maxi mum period of five working days as of the 
date of registration of the merger in the Public Register: 
 
(a) Communication giving information on the merger; 
 
(b) notarial certificate of registration of th e merger in the Public Register, giving 
details of the merger; 
 
(c) copy of the notice published in the Official Journal La Gaceta . 
 
For all purposes, the goods entered under the Regi me shall comply with the terms for the 
corresponding length of stay." 
 
 " Article 56. - Suspension of international or domestic transit for commercial purposes in 
the beneficiary enterprise's installations.   The Customs authority may be requested to 
suspend international or domestic transit mo re than once in order unload, break up, 
consolidate or load goods intended for inward clearance, export or re-export. 
 
The aforementioned operations may take place in the Customs facilities, in a Customs 
warehouse or in the beneficiar y enterprise's installations. 
 
The beneficiary enterprise shall take delivery of the goods and shall immediately inform the 
carrier and the Customs Control Office of their conformity.  If there are differences between the goods declared in transit and those receive d, the beneficiary enterprise shall notify this 
within three hours of the time on which the transit ended. 
 
Entry into the Regime shall be notified on th e working day following the completion of the 
transit. 
 
Failure to respect the proper procedures on the part of the beneficiary shall mean that the 
enterprise may not continue to make use of it subject to notification by the Customs 
authority." 
  " Article 57. - Validity.   These Regulations shall enter into force on the date of publication in 
the Official Journal La Gaceta ." 
 
Article 4. -  The following Single Transitional Provision is hereby 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:   " Single Transitional Provision.   Beneficiary enterprises 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 5. -  This Provision shall enter into force on the date of publication in the Official Journal 
La Gaceta ." 
  Done at San José, on the seventh day of the month of August of the year two thousand and nine.  G/SCM/N/211/CRI 
 Page 41 
 
 
  AMENDMENTS TO THE DUTY-FREE ZONE REGIME LAW NO. 7210  OF 23 NOVEMBER 1990  
NO. 8794 
 
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF COSTA RICA HEREBY DECREES: 
 
AMENDMENTS TO THE DUTY-FREE ZONE REGIME LAW, NO. 7210, 
OF 23 N OVEMBER 1990 
  
Article 1. - Amendments to the Duty-Free Zone Regime Law.  The Duty-Free Zone Regime Law, 
No. 7210, of 23 November 1990 and amendments  thereto are hereby amended as follows: 
  (a) Article 20, subparagraph (a), the first paragraph of subparagraph (b), 
subparagraph (g), and the last paragra ph of the Article shall read as follows: 
 
 " Article 20. -  Enterprises operating under the Duty-Free Zone Regime shall receive the 
following incentives, with the exceptions indicated below: 
 
(a) Inward clearance into the duty-free zone  of raw materials, manufactured or 
semi-manufactured products, component s and parts, packing materials and 
containers, and any other goods requi red for their operations, without 
payment of any taxes or consular fees on their import. 
 
 Exemption from all import or internal taxes on packing and packaging 
materials and containers, as well as on computer equipment and electronic 
waste and any other waste resulting from the enterprise's activities in the duty-free zone provided that these p acking and packaging materials, 
containers and waste are to be recycled or reused. 
 
(b) Inward clearance into the duty-fre e zone of machinery, equipment, 
accessories and spare parts for such machinery and equipment, without 
payment of any taxes or consular fees on their import.  Likewise, exemption from all import taxes and consular fees on the import of motor vehicles required for their operation, production, administration and transport activities. 
 
[…] 
 
(g) Exemption from all taxes on profits, and any other taxes for which the tax 
base is calculated in relation to gross or net earnings, dividends paid to shareholders, or revenue or sales, acco rding to the following distinctions: 
 
(1) For enterprises based within the Expanded Greater Metropolitan Area 
(GAMA), the exemption shall be one hundred per cent (100 per cent) for a period of up to eight years, and fifty per cent (50 per cent) for the following four years. 
 
(2) For enterprises based outside the Expanded Greater Metropolitan 
Area (GAMA), the exemp tion shall be one hundred per cent for a 
period of up to 12 years, and fifty per cent (50 per cent) for the following six years. 
 G/SCM/N/211/CRI 
Page 42  
 
    The durations shall be calculated from th e starting date of the production operations 
of the beneficiary enterprise, provided that that date is no more than three years after the publication of the relevant executive decision. 
 
  In the definition of "within" and "out side" the Expanded Greater Metropolitan Area 
(GAMA), the Foreign Trade Promotion Agency (PROCOMER) shall have regard to 
the rules laid down by the Ministry of National Planning and Economic Policy for this purpose; 
 
[…] 
 
For the purposes of this Law, the Expanded Greater Metropolitan Area (GAMA) shall mean 
the Greater Metropolitan Area defined in the Ur ban Development Plan, together with the 
following cantons:  Grecia, excluding the Rio Cu arto district;  Valverde Vega;  Naranjo;  
Palmares and San Ramón, excluding the districts of Peñas Blancas, Zapotal, Piedades Norte, 
Piedades Sur and Ángeles." 
  (b) Article 22 shall read as follows:   " Article 22. -  Enterprises covered by the Duty-Free Z one Regime, except for those referred to 
in Article 17(b), may bring up to twenty-five per ce nt (25 per cent) of their total sales into the 
national customs territory, subject to complia nce with the requirements set down in the 
Regulations implementing this Law. In the case of  the enterprises referred to in Article 17(c) 
the maximum percentage shall be fifty per cent (50 per cent). 
 
 The goods placed on the domestic market shall be subject to the taxes and customs procedures 
applicable to any similar import from abroad. 
 
Enterprises which sell on the domestic market sha ll pay income tax in the same ratio to the 
value of the goods and services entering national customs territory, in relation to the total 
value of the enterprise's sales and services." 
 
 (c) Article 24 shall read as follows: 
  " Article 24. -  All materials, goods, products, vehicl es, equipment and machinery imported 
into or produced in the Duty-Free Zones in accordance with the provisions of this Law may 
be sold, exchanged or transferred between enterprises established under the terms of this 
Regime. 
 
Enterprises established under the Duty-Free Z one Regime in categories (a) and (f) may 
subcontract in the national customs territory or with other enterprises established under the 
Regime for a portion of their production or pr oduction process, in strict accordance with the 
provisions of the Regulations on this subject. 
 
Enterprises established under the Duty-Free Zone Regime may bring machinery, vehicles or equipment from Duty-Free Zones into the nationa l customs territory, provided that this is for 
the purposes of repairing, maintaining or m odifying the said items.  Where the resolution 
granting Regime status has authorized produc tion activities outside the area authorized as a 
duty-free zone, the enterprise may obtain tempor ary inward clearance into national customs 
territory for the machinery, equipment, ma terials and goods indicated in the aforesaid 
resolution. 
  G/SCM/N/211/CRI 
 Page 43 
 
 
  Regime beneficiaries shall be liable for any damage or loss affecting the goods cleared into 
national customs territory on a temporary basis and shall pay the relevant duties and taxes, 
except in the case of destruction of the goods by act of God or force majeure , duly 
substantiated to the satisfaction of the Customs authority.  Lastly, the time-limit for this form 
of temporary inward clearance and the other details  needed for control shall be set out in the 
Regulations implementing this Law. 
 
The Regulations implementing this Law shall la y down the inspection rules and requirements 
for the sale of goods and services between enterp rises covered by the Duty-Free Zone Regime 
and enterprises covered by other sp ecial import and export regimes." 
 
Article 2. - Additions to the Duty-Free Zone Regime Law:   The following provisions shall be 
added to the Duty-Free Zone Regime Law, No. 7210 , of 23 November 1990 and amendments thereto: 
  (a) A subparagraph (l) shall be added to Article 4 to read as follows: 
 
 " Article 4. -  The powers of the Foreign Trade Promotion Agency of Costa Rica shall be as 
follows: 
 
[…] 
 
(l) To administer a single window system  for investment that centralizes all 
procedures and authorizations for ente rprises seeking to become established 
and to operate in national customs te rritory.  For this purpose, government 
institutions involved in such procedures shall collaborate with the Foreign Trade Promotion Agency of Costa Rica and shall appoint representatives 
with adequate decision-making powers .  Where applicable, such bodies may 
delegate their responsibilities temporarily or permanently to the single window's officials." 
 
[…] 
 
 (b) A new Article 16 bis shall be added to read as follows: 
  " Article 16 bis. - The State shall use the Duty-Free Zone Regime to boost poles of 
development outside the Expanded Greater Me tropolitan Area (GAMA);  for this purpose it 
shall draw up action plans to generate the services, infrastructure and operating conditions 
required to promote the establishment of ente rprises in duty-free zones and the setting up of 
industrial parks or the modernization of those al ready existing in these poles.  The State shall 
urge public universities and the National Training Centre to provide training courses that meet 
the technical and business needs of enterprises in duty-free zones.  Priority shall be given in 
the first instance to Limón, Puntarenas, Guanaca ste, the Brunca Region and the Huetar Norte 
Region." 
 
 (c) The title of Article 17 shall be amende d, and the following new subparagraph (f) and 
a final paragraph shall be added to read as follows: 
  " Article 17. -  Enterprises covered by the Duty-Free Zone Regime shall be classified in one or 
more of the following categories: 
 
[…] 
 G/SCM/N/211/CRI 
Page 44  
 
  (f) Processing industries which produce, process or assemble goods, irrespective 
of whether or not they export, provided that they meet the requirements laid down in Article 21 bis of this Law. 
 
Lastly, enterprises engaged in mining, expl oration or extraction of hydrocarbons, the 
production or sale of arms and ammunition contai ning depleted uranium, companies engaged 
in the production or sale of any type of arms shall not be eligible for the Duty-Free Zone 
Regime.  Likewise, enterprises which generate electric power, unless the power is for their own consumption, shall not be eligible." 
 
 (d) A final sentence shall be added to subpara graph (ch) of Article 18 to read as follows: 
  " Article 18. -  
 
[…] 
 
(ch) […] 
  The provision in this subparagraph shall al so apply to the services enterprises covered by 
Article 17(c) of this Law, as provided in the Regulations." 
 
 (e) A new subparagraph (h) shall be a dded to Article 19 to read as follows: 
  " Article 19. -  
 
The beneficiaries of the Duty-Free Zone Regime  shall be subject to the following obligations: 
 
[…] 
 
(h) Where an enterprise has been given Duty-Free Zone Regime status under 
more than one category of those listed in Article 17 of this Law, the enterprise shall keep separat e accounts for each activity." 
 
(f) A new Article 21 bis shall be added to read as follows: 
  " Article 21 bis. - The beneficiary enterprises referred to  in Article 17(f) of this Law shall 
meet the following requirements: 
 
(a) The project is to be undertaken under the Duty-Free Zone Regime in a sector 
that is strategic for the country's deve lopment or the enterprise is established 
outside the Expanded Greater Metropolitan Area (GAMA). For the purpose of defining strategic sectors, the Ex ecutive shall set up a special commission 
composed of the Minister of Foreign Trade, who shall coordinate the 
commission, the Minister of Finance and the Minister of Planning and 
Political Economy, or their representatives,  a representative of the Centre for 
High Technology and a representative of the production sector, to be elected by the Costa Rican Association of Du ty-Free Zone Enterprises, the Costa 
Rican Development Initiatives Coalition (CINDE), the Chamber of Exporters 
and the Chamber of Industry of Costa Rica.  In order to define a strategic 
sector, the aforementioned special commi ssion shall take into consideration 
the National Development Plan, the pr ior criterion for the sectors concerned 
and the following elements:  project s deemed to make a substantial 
contribution to social development and which create quality jobs, projects  G/SCM/N/211/CRI 
 Page 45 
 
 
  which make an effective contribution to modernizing the country's production 
structure because of the high technology they incorporate, research and development projects, those which foster innovation and transfer of technology or promote the incorporation of clean technology, integrated waste management, energy savings or efficient water management. 
 
(b) Make new investment in the country according to the terms laid down in 
Article 1 of the Law and whose nature and special features are such that it could be made in another country or be transferred to another country.  This 
situation shall be deemed to exist if  the controlling entity operates abroad, 
outside Central America and Panama, at least one manufacturing plant 
similar to the plant which the Regime 's beneficiary will operate in Costa 
Rica.  For the purposes of this Law, co ntrolling entity shall be understood to 
mean the legal entity which owns the beneficiary enterprise established in Costa Rica or has control of its shares, directly or indirectly, or has executive 
authority over it, as specified in the Regulations. 
 
(c) On the date of submitting the app lication for approval under the Regime, 
according to Article 17(f) of this Law, th e enterprise shall be totally or partly 
exempt from, or not subject to,  payment of income tax in Costa Rica.  This requirement shall not be deemed to be fulfilled if the project or activities to 
be carried out by a legal person seeking admission to the Regime are the 
result of the purchase or takeover, in any form, of a legal person that was subject to payment of income tax in Costa Rica, or of its principal assets.  If such purchase or takeover occurs after the applicant has been admitted to the 
Regime, the percentage of exemption from import duty on machinery, 
equipment and raw materials shall be re duced and profits tax shall be reduced 
by the amount represented by the assets purchased as a percentage of the enterprise's total assets. 
 
If the enterprise seeks to be admitted to the Duty-Free Zone Regime under Article 17(f) for 
the purpose of supplying a significant proportio n of goods to established enterprises, in 
conformity with the provisions in this Article , the only requirement shall be that it is new 
investment in the country.  Likewise, if an enterprise seeks to be admitted to the Duty-Free 
Zone Regime under Article 17(f) for the purpose of setting up in a zone outside the Expanded 
Greater Metropolitan Area (GAMA), it shall not be necessary to belong to a sector that is strategic for the country's development.  'Si gnificant proportion' shall be understood to mean 
that at least forty per cent (40%) of the total sales by enterprises referred to in this paragraph 
are supplied to enterprises in duty-free zones. 
 
If an enterprise that is not a beneficiary of the Duty-Free Zone Regime sets up in an industrial 
park regulated by this Law for the purpose of supplying goods or services to beneficiary 
enterprises established in the said park, the provision on management enterprises in 
Article 17(ch) of this Law shall not apply. 
  The provisions in this Article shall be incl uded and set out in detail in the Regulations." 
 
(g) A new Article 21 ter is added as follows: 
 
 " Article 21 ter. - The enterprises referred to in Article 21 bis of this Law shall be subject to 
the following rules: 
 G/SCM/N/211/CRI 
Page 46  
 
  (a) The exemptions and benefits applic able to them in accordance with the 
provision in this Law shall not be con tingent in fact or in law on export 
performance.  Accordingly, neither the provisions of Article 22 of this Law 
nor any other reference in this Law to  export as a requirement for eligibility 
for the Duty-Free Zone Regime shall apply to them. 
 
 All taxes shall apply to goods placed on the domestic market, together with 
the relevant customs procedures applicable to any similar import from abroad.  Tariffs shall only be paid on the inputs used for their production, in conformity with international commitments. 
 
(b) The exemptions and benefits determined  in subparagraphs (a), (b), (c), (ch), 
(d), (e), (f), (h), (i), (j) and (l) of Article 20 of the Law shall apply to them. 
 
(c) If enterprises wish to operate outside an industrial park, the minimum amount 
of initial investment shall apply, but not the other requirements laid down in 
Article 18 (ch) of this Law, without prejudice to full compliance with the control of enterprises operating outside the park, as determined in the Regulations. 
 
(d) Enterprises situated in the Expa nded Greater Metropolitan Area (GAMA) 
shall pay a rate of six per cent (6%) of their profits for the purposes of the 
Income Tax Law during the first eight years and fifteen per cent (15%) for the following four years.  Enterprises situated outside the Expanded Greater 
Metropolitan Area (GAMA) shall pay a ra te of zero per cent (0%) of their 
profits for the purposes of the Income Tax Law during the first six years, 
five per cent (5%) for the following six years, and fifteen per cent (15%) for 
the next six years. 
 
 The initial duration of this benefit sh all be calculated from the date on which 
the beneficiary enterprise commences produc tion, provided that this date is 
not more than three years as of the date of publication of the relevant 
resolution granting Regime status. 
 
 After the period of exemption provided in the resolution granting Regime 
status has expired, beneficiary ente rprises shall be subject to the common 
income tax regime. 
 
 In the case of the reinvestment incentiv e determined in Article 20(l) of this 
Law, the seventy-five per cent (75%) exemption provided therein shall not apply and, instead, a rate of seven point  five per cent (7.5%) shall be imposed 
for income tax. 
 
(e) If the enterprise makes total new inv estment of at least ten million United 
States dollars (US$10,000,000) or its e quivalent in national currency, under 
an investment plan to be carried out over a period of eight years, calculated 
on the basis of the book value of the assets subject to depreciation, and provides at least 100 permanent jobs throughout the period in which the 
enterprise operates, as duly shown on the payroll, the benefits provided in 
Article 20(g) and (l) shall apply in full .  The initial duration of this benefit 
shall be calculated from the date on which the beneficiary enterprise commences production, provided that this date is not more than three years as of the date of publication of the rele vant resolution granting Regime status.  G/SCM/N/211/CRI 
 Page 47 
 
 
   
(f) The right to a tax credit for reinvestme nt of profits in new fixed assets shall 
apply for costs incurred within or outside the country in relation to training of Costa Rican personnel or those resident  in Costa Rica who are working for 
the enterprise in the country, as well as costs incurred within Costa Rica in 
relation to training in micro, small a nd medium-sized enterprises which meet 
the requirements specified in the Regul ations and supply enterprises covered 
by the Duty-Free Zone Regime.  This credit shall be deducted from the income tax payable in the amount of up to ten per cent (10%) of the taxable income for each financial year.  If the amount of the costs referred to above 
exceeds the aforementioned limit of ten per cent (10%) in any one financial 
year, the difference may be used as a credit in each of the following 
consecutive financial years, at the taxpayer's discretion, but the credit applicable in each financial year may not exceed the aforementioned limit of ten per cent (10%).  The Regulations shall specify the criteria for 
reinvestment of profits, the types of costs eligible, as well as the procedure to 
be followed for the corresponding calcula tion, aggregation and other relevant 
aspects for application of this subparagraph. 
 
(g) Enterprises which meet the requireme nts in subparagraph (e) above or are 
situated in zones outside the Expa nded Greater Metropolitan Area (GAMA) 
may defer payment of the income tax applicable until the controlling entity 
has received the dividends or benefits arising from the operations of the enterprise covered by the Regime, or for up to a maximum period of ten years, whichever occurs first, calculated from the day following the 
closure of the respective financial year .  The amount of the payment deferred 
shall give rise to current interest for the State at a special rate corresponding 
to the average basic lending rate on six-month deposits calculated by the 
Central Bank, with the interest commencing on the date at which the payment should have been made.  The occurren ce of any of these circumstances shall 
constitute a resolutive condition and the enterprise shall pay the amount of 
the tax originally deferred and its current  interest within two calendar months 
and fifteen days, updating the original amount according to the change in the 
colon/United States dollar exchange rate, as defined in the Regulations, for each financial year or fraction thereof up to the month preceding that in which the aforementioned period of two calendar months and fifteen days for 
payment without interest or surcharg es commenced, as determined in the 
Regulations implementing this Law.  Th is requirement shall apply when such 
circumstances occur.  If the enterprise d ecides to pay the tax before one of the 
two aforementioned circumstances occurs, the time-limit for the payment and updating indicated shall also apply and the time-limit for payment shall be 
calculated from the day following the relevant payment procedure at the Tax Administration.  In any of the aforementioned cases, if the corresponding tax 
is paid outside the period of two cale ndar months and fifteen days allowed, 
the accrued interest and the penalties provided in the Code of Tax Regulations and Procedures shall apply to the original debt duly updated by 
the current interest.  In order to be able to defer payment of the tax as indicated in this subparagraph, the enterprise shall regularly submit the 
information laid down in the Regulations, in the form of a sworn statement, 
to PROCOMER or the Tax Administration,  as appropriate.  Failure to comply 
with this obligation or the submission of  false or incorrect information shall 
be a condition giving rise to loss of the fiscal benefit for the respective financial year and the resulting obligatio n to pay the income tax due and the G/SCM/N/211/CRI 
Page 48  
 
  interest, with the penalties and surcha rges specified in the Code of Tax 
Regulations and Procedures, as of the time on which the debt fell due until it 
is effectively paid. 
 
 For the purposes of the provisions in this subparagraph, the action by the Tax 
Administration Office to determine the obligation shall comply with 
Articles 51 and 53 of the Code of Tax Re gulations and Procedures.  The term 
shall be calculated as of the first of January of the calendar year following that on which the income tax declaration should have been submitted.  If the Tax Administration takes action to require  payment of the tax and current and 
accrued interest, it shall comply with the time-limit laid down in the aforesaid 
Article 51;  this term shall, howev er, be suspended during the period of 
postponement of payment of the tax refe rred to in this subparagraph or until 
the circumstances specified in the preceding paragraph occur. 
 
 In order to guarantee payment of the deferred tax as provided in this 
subparagraph, together with the corresponding interest, surcharges and penalties, all the goods of the benefi ciary enterprise, movable, immovable 
and intangible property of the benefici ary enterprise, whether or not entered 
under the Duty-Free Zone Regime, sha ll become the responsibility of the 
revenue authorities, as a legal lien agai nst the aforementioned tax obligation. 
 
(h) If an enterprise in a strategic sector  sets up in a zone outside the Expanded 
Greater Metropolitan Area (GAMA) and provides 100 permanent jobs throughout the period in which the enterprise operates, as duly shown on the payroll, the benefits provided in Article  20(d), (g) and (l) of this Law shall 
apply in full.  The time-limit for this benefit shall be calculated from the date 
on which the beneficiary enterprise comme nces production, provided that this 
date is not more than three years as of the date of publication of the relevant resolution granting Regime status.  Su ch enterprises may also set up outside 
an industrial park provided that the initia l investment in new fixed assets is at 
least five hundred thousand United St ates dollars (US$500,000) or its 
equivalent in national currency and that the relevant customs and fiscal 
checks are carried out. 
 
(i) If an enterprise seeking to obtain the Regime's benefits under one of the 
categories listed in Article 17 of this Law sets up in an area outside the 
Expanded Greater Metropolitan Area (GAMA), the new initial investment in 
fixed assets shall be at least one hundred thousand United States dollars (US$100,000) or its equivalent in na tional currency.  Such enterprises may 
operate outside the industrial park prov ided that the initial investment in new 
fixed assets is at least five hundred thousand United States dollars (US$500,000) or its equivalent in na tional currency and that the relevant 
customs and fiscal checks are carried out." 
  (h) A new Article 21 quater  shall be added to read as follows: 
  " Article 21 quater . - Beneficiary enterprises under the Duty -Free Zone Regime in accordance 
with Article 17(b), (c), (ch) and (d) of th e Duty-Free Zone Regime Law, No. 7210, of 
23 November  1990, shall continue to benef it from the incentives provided by Article 20(a), 
(b), (c), (ch), (d), (e), (f), (g), (h), (i) and (j) of this Law in accordance with the terms laid 
down in the said Article." 
  G/SCM/N/211/CRI 
 Page 49 
 
 
  TRANSITIONAL PROVISIONS 
 
TRANSITIONAL PROVISION I 
 
 The incentives provided in Article 20(b), (d), (f), (g), (h) and (l) of the Duty-Free Zone 
Regime Law, No. 7210, of 23 November  1990, shall c ontinue to apply to the enterprises indicated in 
Article 17(a) of the aforesaid Law until expiry for Co sta Rica of the period provided in Article 27.4 of 
the Agreement on Subsidies and Countervailing Measures, which forms part of the Final Act incorporating the results of the Uruguay Round of multilateral trade negotiations, approved by means 
of Law No. 7475 of 20 December 1994, including the extensions approved by the World Trade 
Organization's Committee on Subsidies and Countervailing Measures, and as long as Costa Rica 
remains eligible and obtains such extensions, after wh ich the benefits shall cease  and be null and void.  
At the latest by the date upon which the afor ementioned period expires, the other incentives 
applicable to beneficiary enterprises under the Duty -Free Zone Regime shall be brought into line, 
where appropriate, for the enterprises indicated in Article 17(a) of the Duty-Free Zone Regime Law, 
No. 7210, of 23 November 1990,  with the provisions of the aforementioned Agreement on Subsidies 
and Countervailing Measures, in accordance with the regulatory measures to be taken by the 
Executive for this purpose.  
TRANSITIONAL PROVISION II 
  The provisions in Transitional Provision I modi fy, where relevant, the scope and time-limits 
for the exemptions and incentives provided by Artic le 20 of Duty-Free Zone Regime Law, No. 7210, 
of 23 November 1990, in respect of the enterprises indicated in Article 17(a) of the aforementioned 
Law, and shall be understood to have been incorpor ated into the respective resolutions authorizing 
Duty-Free Zone Regime status, without prejudice to  rights acquired in good faith, where these exist. 
 
TRANSITIONAL PROVISION III 
 
 The beneficiary enterprises indicated in Artic le 17(a) of the Duty-Free Zone Regime Law, 
No. 7210, of 23 November 1990, and amendments ther eto, may request a transfer to the category 
described in Article 17(f) provided that they meet  the requirements laid down in subparagraphs (a) 
and (c) of Article 21 bis of this Law and make new investment in  the terms set out in Article 1 of this 
legislative text.  If the enterprise is enjoying th e benefits outside an industrial park, the minimum 
investment shall be five hundred thousand United States dollars (US$500,000).  In such cases, the 
time-limits shall be calculated as of the tran sfer and the terms laid down in Articles 21 bis and 21 ter 
of this Law shall apply. 
 
TRANSITIONAL PROVISION IV 
 
 The beneficiary enterprises indicated in Artic le 17(a) of the Duty-Free Zone Regime Law, 
No. 7210, of 23 November 1990, which do not transfer  to the category described in Article 17(f) shall 
retain the exemptions they have been given until expiry of the time-limit, in accordance with the 
respective resolution granting Duty-Free Regime st atus or until the date upon which the extensions 
mentioned in Transitional Provision I expire for Co sta Rica, and as of the time when the extensions 
mentioned in Transitional Provision I expire for Co sta Rica they shall not be subject to any export 
requirement, in accordance with the term s of subparagraph (a) of Article 21 ter of this Law.  After 
expiry of the time-limits for extension granted in the resolution granting Duty-Free Regime status, the 
beneficiary enterprises shall be subject to the common income tax regime. 
 G/SCM/N/211/CRI 
Page 50  
 
  TRANSITIONAL PROVISION V 
 
 The Costa Rican State shall have a period of four  years as of the entry into force of this Law 
to encourage the establishment of new industrial park s or the modernization and proper functioning of 
those industrial parks already existing, in five poles of development:  Limón, Puntarenas, Brunca 
Region, Guanacaste and Zona Norte. 
  These provisions shall enter into force on the date of publication.   Done at Riviera de Belén on the twelfth day of  the month of January in the year two thousand 
and ten. 
 
For implementation and publication  G/SCM/N/211/CRI 
 Page 51 
 
 
  AMENDMENTS TO THE REGULATIONS IMPLEMENTING THE DUTY-FREE ZONE REGIME LAW, 
EXECUTIVE DECREE NO. 34739-COMEX-H  OF 29 AUGUST 2008 
 
No. 36000-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, No. 7210 of 23 November 1990;  and Articles 5, 6, 50, 175 an d 176 of the General Customs Law, No. 7557 of 
20 October 1995;  and Articles 163 to 166 of th e Regulations implementing the General Customs 
Law;  and  
Whereas: 
 
I. The Duty-Free Zone Regime attracts fo reign investment, benefiting living conditions 
thanks to the creation of new sources of empl oyment that have a positive effect on the 
quality of life of Costa Rican citizens; 
 
II. The amendment of the Duty-Free Zone Re gime Law, Law No. 8794, published in the 
Official Journal La Gaceta  No.15 of 22 January 2010, brought this Regime into line 
with the requirements of the World Tr ade Organization in the Agreement on 
Subsidies and Countervailing Measures (SCM Agreement); 
 
III. 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; 
 
IV. That the latest amendments to the Duty -Free Zone Regime Law make it necessary to 
adapt the implementing Regulations for the Law in order to incorporate the required elements to adapt them to prevailing ci rcumstances, within the legal framework; 
 
V. For the aforementioned reasons, it is n ecessary 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, 5, 7, 10, 13, 21, 27, 29, 32, 34, 38, 44,50, 55, 59, 63, 66, 71, 72, 73, 81, 
82, 83, 84, 87, 88, 92, 94, 95, 95 bis, 97, 98, 100, 101, 103, 105, 106, 107, 108, 109, 110, 122, 124, 
127 and 128 of the Regulations implementing the Duty-Free Zone Regime Law, Executive 
Decree No. 34739-COMEX-H of 29 August 2008, and addition of new 
Articles 129, 130, 131, 132, 133, 134, 135, 136, 137, 138, 139, 
140, 141, 142, 143 and 144 
 G/SCM/N/211/CRI 
Page 52  
 
  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: 
  "Fixed assets:  Works in process, immovable property, and movable property subject to 
depreciation, immovable property not subject to depreciation and the software used in 
operating the business, for which the date and co st of acquisition are duly recorded in the 
enterprise's accounting records.  
  Fixed assets subject to depreciation:  Movable and immovable property subject to 
depreciation according to the methods followed by the Directorate-General of Taxation, used 
in operating the business, for which the date and cost of acquisition are duly recorded in the 
enterprise's accounting records.  Works in pr ocess are not covered by any of the foregoing 
definitions inasmuch as they are not used in operating the business. 
 
 Training of personnel:  A process that includes a series of educational and training activities, 
at the technical or university levels and in other higher studies, intended to impart greater 
knowledge, expertise in other languages, skills, abilities and aptitudes to Costa Rican personnel or those resident in Costa Rica and employed by a beneficiary enterprise under the Duty-Free Zone Regime, with the aim of improving performance in any of the spheres of operation in the authorized activities of th e beneficiary enterprise under the Regime. 
 
 Training of personnel of supplier enterprises:  Educational and training activities intended 
for employees or personnel of enterprises suppl ying goods and services, with the aim of 
improving production processes or services, l earning other languages, procedures, business 
management standards or techniques, use a nd application of technology and machinery, 
manufacturing techniques, quality control and any activities intended to upgrade the 
technological and managerial capacity of the supplier enterprise. 
  Majority shareholder:  The legal person who controls the majority of the enterprise's equity 
capital in such a way that it can control decisi ons by the company.  Those natural or legal 
persons that own at least 51 per cent of the sh ares are deemed to be majority shareholders. 
 
 Direct control of shares: The control of shares exercised directly by one legal person over 
another without the intermediation of  subsidiary or related entities. 
  Indirect control of shares:  The control of shares exercised by one legal entity over another 
through subsidiary or related entities and over which it exercises direct control. 
  DGT:  Directorate-General of Taxation. 
  Controlling entity:  The legal entity which owns or exerci ses control directly or indirectly 
over the shares of the beneficiary enterprise est ablished in Costa Rica, or which has executive 
authority over it. 
  Enterprises not subject to income tax:  Processing enterprises which produce, process or 
assemble goods and which operate in Costa Ri ca but are not obliged to pay income tax 
because they are covered by Article 3 of th e Income Tax Law, Law No. 7092 of 21 April 
1988 and amendments thereto. 
  Likewise, for the purposes of the Duty-Free Zone Regime, ente rprises not subject to income 
tax include those enterprises which, at the ti me of requesting admission to the Regime, were 
not engaged in any profit-making activity in Costa Rica subject to income tax.  G/SCM/N/211/CRI 
 Page 53 
 
 
   
 GAMA:  The Expanded Greater Metropolitan Area defi ned in the Urban Development Plan, 
together with the following cantons: Grecia, excluding the Rio Cuarto district;  Valverde 
Vega;  Naranjo;  Palmares and San Ramón, excluding the districts of Peñas Blancas, Zapotal, Piedades Norte, Piedades Sur and Ángeles. 
 
 Inputs:  Goods used to produce the final goods, excluding machinery and equipment. 
  Megaprojects:  Projects whose total new i nvestment in the country amounts to at least ten 
million dollars, the legal currency of the Unite d States of America (US$10,000,000) or its 
equivalent in national currency,  in fixed assets subject to depreciation, under an investment 
plan to be carried out over a period of eight years and which undertake to provide at least 100 permanent jobs, as duly shown on the payroll, th roughout the period in which the enterprise 
operates under the Regime. 
 
 Authorized economic operator:  Legal person which, ha ving complied with the 
requirements and obligations laid down in th e Implementing Regulations for Authorized 
Economic Operators, Executive Decree No. 35802-H of 28 January 2010, published in the Official Journal La Gaceta  No. 46 of 8 March 2010, receives the benefits and is entrusted 
with carrying out customs operations within  or outside national customs territory. 
 
 Similar processing plant:  Plant which produces, processe s or assembles goods abroad, 
outside Central America or Panama. 
  Executive authority:  The authority exercised by an entity, meaning a natural or legal 
person, with sufficient authority to take deci sions on any matter relating to an enterprise. 
 
 Principal assets:  For the purposes of Articles 131, 142 and 143 of these Regulations, 
principal assets shall be unders tood to mean those fixed assets subject to depreciation related 
to the production process of the beneficiar y enterprise under the Regime and strictly 
necessary to continuation of the productio n process or the production line of the 
non-beneficiary enterprise in which the assets were being used. 
 
 Significant proportion:  The percentage of total sales by processing enterprises under the 
Regime for the purpose of supplying goods to other beneficiary enterprises under the Duty-Free Zone Regime.  Such sales shall amount to at least forty per cent (40%) of the supplier enterprise's total sales." 
 
Article 2. -  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 Zone Regime Law, is he reby amended so that the definitions read as 
follows:  
 " Law No. 7210 and amendments thereto or Law:   The Duty-Free Zone Regime Law, Law 
No. 7210 of 23 November 1990  and amendments thereto. 
  Customs Declaration:  The document drawn up by electronic transmission of data on any 
entry, exit or movement of materials, goods, machinery or equipment into and out of the 
Duty-Free Zone Regime. 
  Cancellation of approval of areas:   The reduction in the area previously authorized for the 
beneficiary, either because it has been reor ganized, one of its facilities has been closed 
altogether or because the area of one or more facilities has been reduced." G/SCM/N/211/CRI 
Page 54  
 
   
Article 3. -  Articles 5, 7, 10, 13, 21, 27, 29, 32, 34, 38, 44, 50, 55, 59, 63, 66, 71, 72, 73, 81, 82, 83, 
84, 87, 88, 92, 94, 95, 95 bis, 97, 98, 100, 101, 103, 109, 110, 122 and 124 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 Regul ations implementing the Duty-Free Zone 
Regime Law, are hereby am ended to read as follows: 
  " Article 5. - Criteria for new investment.   Duty-Free Zone Regime status shall be granted 
solely to enterprises making new investments in  Costa Rica in accordance with the following 
criteria: 
 
 I. Enterprises situated within the GAMA 
 
(a) Initial new investment in fixed assets of at least one hundred and 
fifty thousand dollars, the legal currenc y of the United States of America 
(US$150,000) or the equivalent in local currency, for enterprises based 
within a duty-free zone park; 
 
(b) initial new investment in fixed assets of at least two million dollars, the legal 
currency of the United States of Americ a (US$2,000,000) or the equivalent in 
local currency, for enterprises base d outside a duty -free zone park. 
 
 III. Enterprises situated outside the GAMA 
 
(a) Initial new investment in fixed assets of at least one hundred thousand 
dollars, the legal currency of the Un ited States of America (US$100,000) or 
the equivalent in local currency, for enterprises based within a duty-free zone 
park; 
 
(b) initial new investment in fixed assets of at least five hundred thousand 
dollars, the legal currency of the Un ited States of America (US$500,000) or 
the equivalent in local currency, fo r enterprises based outside a duty-free 
zone park. 
 
For the purposes of the preceding paragraphs, wh ere the assets have been purchased in local 
currency the amount of the initial new investment shall be determined on the basis of the selling exchange rate for the dollar in effect according to the Central Bank of Costa Rica on 
the day of the purchase of the asset in question." 
  " Article 7. - Time-limit for carrying out initial investment.  Initial investment means 
investment carried out within the time-frame es tablished 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. 
 
The minimum initial new investment in fixed asset s requirement shall be independent of the 
total investment obligation undertaken by the beneficiary enterprise, as set down in the 
resolution granting Regime status, although th e minimum initial new i nvestment 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 ap plication 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 in vestment undertaken by the enterprise."  G/SCM/N/211/CRI 
 Page 55 
 
 
   
 " Article 10. - Application requirements.   Any enterprise interested in operating under the 
Regime and obtaining the status of Customs Se rvice Auxiliary shall make an application to 
PROCOMER on the corresponding form. 
 
This form shall contain the following inform ation and be accompanied by the documentation 
listed below: 
 
 I. Information common to the application for admission to the Regime and status 
as a Customs Service Auxiliary: 
 
(a) Name of applicant; 
 
(b) identity document; 
 
(c) address or means of notification; 
 
(d) exact address of the installations; 
 
(e) ownership of the property:  indicat e whether the property is owned by the 
enterprise or leased; 
 
(f) telephone number, fax and e-mail address; 
 
(g) status of the enterprise:  indicate whether the enterprise is already operating 
or is a project; 
 
(h) name of legal representative, identity document and number; 
 
(i) description of the activity; 
 
(j) sworn statement indicating that: 
 
(i) The enterprise will not engage in the production or marketing of any 
kind of arms or ammunition containing depleted uranium; 
 
(ii) the enterprise will not engage in mining, exploration or extraction of 
hydrocarbons, or the generation of electric power unless it is 
generated for its own consumption; 
 
(iii) the enterprise is listed with the DGT as a taxpayer; 
 
(iv) the enterprise is up to date with the payment of all its contributions to 
the Costa Rican Social Security Fund; 
 
(v) the enterprise, its shareholders, directors, employees or 
representatives have not been convicted by final administrative resolution in connection with the enterprise's activities for 
administrative, customs, tax or customs tax offences; 
 
(vi) the enterprise, its shareholders, directors, employees or 
representatives have not been convicted by final Court judgement in connection with the enterprise's activities for customs or tax offences; G/SCM/N/211/CRI 
Page 56  
 
   
(vii) the enterprise and the investme nt project to be implemented do not 
benefit from any export incentives regime; 
 
(viii) the enterprise and the investment project to be implemented have not 
previously benefited from incentives under the Regime, even if this 
was under the name of a differe nt natural or legal person; 
 
(ix) the enterprise is not a banking, financial or insurance entity and does 
not provide professional services; 
 
(x) the enterprise undertakes to acquire suitable software for the 
electronic transmission of data to the National Customs Service's computer system; 
 
(xi) the enterprise undertakes to comply with the legal, regulatory and 
procedural provisions on the control and safety of the goods applicable to its installations; 
 
(k) the signature on the form shall be authenticated by an attorney-at-law or 
notary public; 
 
(l) production activities outside the area authorized as a duty-free zone:  where 
the normal activities of the enterprise  require that production activities be 
carried out outside the area authorized as a duty-free zone, the enterprise shall 
provide details of such activities and the corresponding justification; 
 
(m) enterprises situated outside the park:  if enterprises wish to set up outside the 
park, they shall submit a sworn statement indicating that: 
 
(i) The enterprise is able to comply with the supervisory mechanisms for 
monitoring the entry and exit of goods and persons; 
 
(ii) the enterprise shall provide the Directorate, COMEX and 
PROCOMER with all the facilities and assistance specified in Article 14 of the Law; 
 
(n) enterprises situated outside the park under category (a) and services 
enterprises situated within the GAMA:  these enterprises shall prove that the 
nature of their project prevents them  operating within a park.  Compliance 
with this requirement shall be by means of a sworn statement in which the enterprise gives details of the significant advantages of engaging in the project outside the park. 
 
 II. Information required for admission to the Regime: 
 
(a) Detailed information on the pollution and waste that will result from the 
production process, or copy of the form submitted to the relevant entity of the 
Ministry of the Environment and Energy and Telecommunications 
(MINAET) regarding the environmenta l impact study, where applicable, 
pursuant to the relevant Laws and regulations; 
  G/SCM/N/211/CRI 
 Page 57 
 
 
  (b) the amount of initial new investment in fixed assets, together with the total 
investment planned and number of employment positions; 
 
(c) estimate of the domestic value added the enterprise undertakes to maintain.  
This calculation shall be based on the formula laid down for this purpose in 
these Regulations; 
 
(d) date of commencement of production. 
 
 III. Information required for the granting of status as a Customs Service Auxiliary: 
 
(a) Name and identity of the staff member 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) sworn statement, registered with a notary, attesting to the existence of a place 
suitable for the safekeeping of the docum ents which, in accordance with its 
status as a Customs Service Auxiliary, it  is required to keep;  and the address 
of this place. 
 
 IV. Documentation: 
 
(a) Certificate of legal personality issued not more than three months previously; 
 
(b) special power of attorney if the app lication 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 acquisition of the status of Customs Service Auxiliary; 
 
(c) copy, certified by a public notary, of the front and back of the identity 
documents of the legal representative a nd of the staff member who will deal 
directly with the National Customs Service; 
 
(d) copy, certified by a public notary, of the enterprise's legal certificate; 
 
(e) if the applicant is a natural person,  the following shall also be included: 
 
(i) Copy, certified by a public notary, of the front and back of the 
applicant's identity document; 
 
(ii) document issued by the Costa Ri can Social Security Fund certifying 
that the applicant does not work for the Costa Rican State, its 
autonomous or semi-autonomous institutions or State-owned 
enterprises, pursuant to Article 29 bis of the General Customs Law; 
 
(iii) certificate from the Offenders Register (to be procured directly from 
the entity responsible for labour matters)." 
  " Article 13. - Formalities for admission to the Regime.   Within two working days of 
submission of the application, PROCOMER shall notify the applicant of any missing G/SCM/N/211/CRI 
Page 58  
 
  documentation, or of any requirement that has not been met relating to the application for 
admission to the Regime, granting a period of ten working days for compliance with the 
requirements. 
 
Within not more than one working day of receipt of all the required information, the 
competent technical unit of PROCOMER shall forward an opinion to the Board of Directors 
or to the entity to which the Board of Director s has delegated this role;  the opinion shall 
include an assessment of the aspects set out in these Regulations and a recommendation, with 
supporting arguments, on whether or not Regime status should be granted to the applicant 
enterprise.  The Board of Directors, the entity to which this role has been delegated, or 
PROCOMER may seek the opinion of other government entities or bodies where it considers 
that this will assist with the assessment of the project.  Following the analysis of the 
application, within five working days of rece ipt of the complete application, the Board of 
Directors or the relevant entity of PROCOMER shall submit the final recommendation to COMEX so that the Executive can take a d ecision on the matter within not more than 
four working days from receipt of PROCOMER's recommendation." 
  " Article 21. - Validity of the benefits.   The benefits granted to enterprises by the Law take 
effect as of the date on which the resolution granting Regime status is forwarded to the 
applicant, but without prejudice to the second pa ragraph of Article 20(g) of the Law and the 
provisions in subparagraph (d) of Article 21 ter of the Law.  Notwithstanding the foregoing, 
performance of the activities unde r the Regime and actual enjoyment of the benefits may not 
commence until such time as the beneficiary ente rprise has signed an operating contract with 
PROCOMER, in the format established for this purpose. 
 
In order to commence production operations under the Regime, the enterp rise shall have been 
authorized by the Directorate to act as a Cu stoms Service Auxiliary, in accordance with the 
General Customs Law and its implementing Regulations. 
 
The resolution granting Regime status, a ll amendments thereto, and the resolution 
relinquishing the Regime shall be publis hed in full in the Official Journal La Gaceta , at the 
expense of the applicant enterprise." 
 
 " Article 27. - Installation of enterprises not covered by the Regime within a park and 
reduction of incentives.   If enterprises not covered by the Regime set up in the duty-free 
zone park, the management enterprise shall notify the DGT and the Directorate, within three working days of the conclusion of the contract. 
 
The management enterprise of the park permitti ng the installation of enterprises not covered 
by the Regime whose purpose is not to provide  goods or services to beneficiary enterprises 
installed in the park shall no longer be exempt from the taxes indicated in Article 20(g) of the 
Law.  The said exemptions shall be reduced pro rata  in accordance with  the following 
formula: 
 
 Total revenue paid to the park management enterprise by the enterprises not covered by the Regime   
 Total revenue of the pa rk management enterprise   
 
The figure obtained by using the above formula sh all serve to determine the amount of the tax 
to be paid by the management en terprises in such a situation. 
  G/SCM/N/211/CRI 
 Page 59 
 
 
  The corresponding taxes shall be paid as of the date on which authorization was given for the 
installation of the enterprise not covered by th e Regime and not providing goods or services 
to enterprises in duty-free zones inst alled in the duty-free zone park." 
  " Article 29. - Extension or reduction of the area of a duty-free zone park:   Enterprises 
managing duty-free zone parks may extend or reduce the area of the park in question provided 
that they comply with the follo wing conditions and requirements: 
  (a) The area added shall be on land contiguous with the area previously authorized as a 
duty-free zone park or mutually separated therefrom by an easement, a public 
highway, a railway, a private road, river, stream or water course, whether or not 
permanent, contiguous therewith.  More over, the resulting total area following 
extension or reduction shall always be ma intained as a property, or properties, 
independent for registration purposes.  Reductions that affect the minimum 
infrastructure required at the time the park was authorized as a duty-free zone park or 
the minimum total available building area re quired for parks intended exclusively for 
service supply or trading enterprises shall not be accepted. 
   Where the park is extended on land separ ated by an easement, a public highway, a 
railway, a private road, river, stream or wa ter course, whether or not permanent, the 
management enterprise shall guarantee the exis tence of a single register for recording 
goods entering and leaving the duty-free zone park, for the various purposes for 
which the legislation provides. 
  (b) If the area is to be extended by adding one  or more buildings or specific floors in a 
building, the land on which such buildings ar e situated shall also be contiguous with 
the area of the park previously authorized  as a duty-free zone, or mutually separated 
therefrom by an easement, a public highway, a railway, a private road, river, stream 
or water course, whether or not permanen t, contiguous with the area previously 
authorized as a duty-free zone park.  In the case of buildings, only complete floors 
may be added or excluded. 
 
  If extension of the park results in land separated by an easement, a public highway, a 
railway, a private road, river, stream or wa ter course, whether or not permanent, the 
management enterprise shall guarantee the exis tence of a single register for recording 
goods entering and leaving the duty-free zone park, for the various purposes for which the legislation provides. 
 
 (c) The park area resulting from the extension or reduction shall be such that it can be 
subjected to the necessary procedures for c ontrolling the entry and exit of goods, in 
accordance with the General Customs Law a nd its implementing Regulations and the 
corresponding operational policies of the Directorate.  Compliance with this 
obligation shall be verified by the Director ate after the new area has been authorized 
by the Executive.  In such case s, the provisions in the articles concerning approval of 
new areas and annulling approval of ar eas in these Regulations shall apply. 
  (d) If the properties or property to be added do(es) not belong to the enterprise managing 
the park, the application shall be accomp anied by a document in which the owner 
expressly agrees to the good or goods in hi s ownership being assigned to the Regime 
and undertakes to comply, where appropria te, with the laws and regulations 
governing the Regime, as required by PROC OMER and the Directorate.  The fact 
that the park management enterprise is not th e registered owner of one or more of the 
properties that make up the park does not limit or diminish its responsibilities and G/SCM/N/211/CRI 
Page 60  
 
  obligations as manager, within the terms of the Law and these Regulations, and the 
management enterprise shall therefore adopt all the contractual provisions necessary in its relations with the owners and/or lessees of properties that make up the park. 
  (e) If the infrastructure or buildings of the area for which exclusion is being requested 
have been built using any form of statut ory tax concession provided by the Law for 
development or duty-free zone park manageme nt enterprises, the applicant enterprise 
shall proceed to refund the taxes corres ponding to those concessions, as determined 
by the Ministry of Finance.  For the purposes of the corresponding calculation, the beneficiary enterprise shall submit to the Mini stry an expert's report by a professional 
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 ar ea reduction application shall not become 
effective until such taxes have been refunded. 
 
  If the enterprise built the area whose authorization is being annulled without making 
use of tax concessions, it shall submit the application accompanied by a certificate from an approved certified public accountant st ating the situation, including invoices 
and/or customs declarations and any other re levant 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 transmit a copy of the 
said certification to the Directorate's Taxation Department and to the DGT so that the controls and revisions deemed relevant can  be made.  The agreement by which the 
area is cancelled shall be issued without prejudice to the inspection that may be 
conducted by the Ministry of Finance. 
 
 (f) For the purposes of Article 17(ch) of Law No. 7210 and amendments thereto, an 
enterprise covered by the Regime shall be c onsidered to be set up in a park if it 
operates within the area authorized as a park.  The management enterprise shall 
inform PROCOMER and the Directorate of any change in the ownership or 
occupation of the area authorized as a park, by such means and in such form as these 
bodies may specify. 
  (g) Pursuant to Article 21 bis of the Law, if an enterprise not benefiting from the 
incentives under the Duty-Free Zone Regime sets up in a duty-free zone park for the 
purpose of providing goods or services to be neficiary enterprises installed in the said 
park, the provisions in Article 17(ch) of th e Law shall not be applicable to park 
management enterprises.  Within three working days of the date of conclusion of the contract, management enterprises shall inform PROCOMER, the Directorate and the DGT when supplier enterprises set up in the park, and shall attest to the 
documentation proving that the said enterprises are supplying duty-free zone enterprises installed in the duty-free zone park they are managing.  Likewise, 
management enterprises shall keep an u pdated register of supplier enterprises 
installed in the park." 
  " Article 32. -  Examination of the application.  In the case of applications from enterprises 
wishing to set up outside a duty-free zone pa rk, the provisions of Chapter III of these 
Regulations shall apply.  In addition, PROC OMER shall also be required to establish the 
following aspects: 
 
(a) In the case of enterprises classified under subparagraphs (a) and (c) of 
Article 17 of the Law, situated within  the GAMA, that the characteristics of  G/SCM/N/211/CRI 
 Page 61 
 
 
  the production process or the nature of the project prevent its being carried 
out within a duty-free zone park; 
 
(b) that the enterprise is able to comp ly with the supervisory mechanisms for 
monitoring the entry and exit of goods  and persons, in accordance with the 
General Customs Law, its implementi ng Regulations, and operational policy 
instructions in this regard issued by the Directorate; 
 
(c) that the enterprise complies with the obligation laid down in Article 14 and 
other relevant provisions of the Law. 
 
PROCOMER shall ensure compliance with the aforementioned requirements on the basis of 
the information submitted by the enterprise in the sworn statement provided with the application for admission, as laid down in Article 10 of these Regulations." 
 
 " Article 34. - Decision of the Ministry of Finance.   In the case of applications from 
enterprises classified under subparagraphs (a) and (c) of Article 17 of the Law intending to set 
up within the GAMA, COMEX shall carry out th e mandatory consultation with the Ministry 
of Finance pursuant to Article 18(ch) of the Law. 
 
The Ministry of Finance shall verify the existen ce of the physical installations of the applicant 
enterprise at the address indicated in the file transmitted by COMEX or, in its absence, the 
documentary examination of the construction proj ect described in the application, and shall 
issue the corresponding decision.  Pursuant to Ar ticle 18 of the Law, the Ministry of Finance 
shall take a decision within 15 working days of  receipt of the copy of the application in 
question.  At the expiry of this period, if no reply has been received, it shall be understood 
that the application has been accepted. 
 
After admission to the Regime has been gr anted and pursuant to Article 19 of these 
Regulations, during the final inspection of the inst allations it shall also be verified that the 
address is the same as that in the relevant decision." 
 
 " Article 38. - Application for annulment of approval of areas.   Applications for annulment 
of approval of areas shall be submitted to PROCOMER on the appropriate form, with a 
detailed inventory of all the goods to be found in the area for wh ich approval is to be annulled 
and their finality. 
 
PROCOMER shall examine the application and, if it considers it in order, shall forward a 
copy to the Directorate, toge ther with a copy of the corresponding authorization, within a 
maximum period of five working days. 
 
The Directorate, through its Registration Depa rtment shall request the Customs Control 
Office to inspect the installations in order to ve rify that the inventory submitted together with 
the application matches the goods effectively to  be found in the installations, and that the 
remaining area complies with the relevant fiscal and customs requirements. 
 
For this purpose, the Customs official shall draw up a report containing the information on the 
goods and their finality and, usin g the appropriate form, shall determine that the remaining 
installations comply with the relevant require ments.  This inspection shall be conducted not 
later than ten working days after notification of  the request for inspection by the Registration 
Department. 
 G/SCM/N/211/CRI 
Page 62  
 
  After the installations have been inspected a nd the report has been drawn up, if there are no 
objections, the enterprise may dispose of the goods according to the finality indicated and in 
compliance with the corresponding procedures.  The Customs shall send immediately to the 
Registration Department the original of the form drawn up during the inspection so that it 
may proceed with the appl ication for annulment. 
 
Following expiry of the time-limit indicated, if  the Customs has not conducted the inspection, 
the enterprise shall draw up a report containing the aforementioned information and shall send a copy thereof to the Customs Control Office a nd the Registration Department so that it may 
proceed with issuing the corresponding resolution on annulment. 
 
The Registration Department shall issue this  resolution within three working days from 
receipt of the documentation forwarded by the Customs Control Office or by the enterprise, as appropriate. 
 
For the foregoing purposes, the goods may be sent to  other installations of the enterprise, to a 
Customs agent in accordance with the rules app licable to such cases, or be re-exported or 
imported, in conformity with the procedures in force." 
  " Article 44. - Application for substitution.   The relevant application shall be submitted to 
PROCOMER by the substitute enterprise and shall contain the following information: 
 
I. Information common to the application for substitution under the 
Regime and status as a Customs Service Auxiliary: 
 
 (a) Name and identity number of the substitute enterprise; 
 
(b) name and identity number of the beneficiary to be substituted and 
indication of the number of the Executive Resolution granting Regime status; 
 
(c) address or means of notification of the substitute enterprise; 
 
(d) ownership of the property:  i ndicate whether the property is owned 
by the substitute enterprise or leased; 
 
(e) telephone number, fax and e-mail a ddress of the substitute enterprise; 
 
(f) name of the legal representative of the substitute enterprise, with an 
indication of the identity document and number; 
 
(g) sworn statement from the substitute enterprise indicating that: 
 
(i) The enterprise will not engage  in the production or marketing 
of any kind of arms or ammunition containing depleted uranium or the production or sale of any kind of weapon; 
 
(ii) the enterprise will not engage in mining, exploration or 
extraction of hydrocarbons, or the generation of electric 
power unless it is generated for its own consumption; 
 
(iii) the enterprise is listed with the DGT as a taxpayer; 
  G/SCM/N/211/CRI 
 Page 63 
 
 
  (iv) the enterprise is up to date with the payment of all its 
contributions to the Costa Ri can Social Security Fund; 
 
(v) the enterprise, its shareholders, directors, employees or 
representatives have not been convicted by final 
administrative resolution in conn ection with the enterprise's 
activities for administrative, customs, tax or customs tax offences; 
 
(vi) the enterprise, its shareholders, directors, employees or 
representatives have not been convicted by final Court 
judgement in connection with the enterprise's activities for customs or tax offences; 
 
(vii) the enterprise is not a banking, financial or insurance entity 
and does not provide professional services; 
 
(viii) the enterprise undertakes to ac quire suitable software for the 
electronic transmission of data to the National Customs Service's computer system; 
 
(ix) the enterprise undertakes to comply with the legal, regulatory 
and procedural provisions on the control and safety of the goods applicable to its installations; 
 
(h) the signature on the form shall be authenticated by an attorney-at-law 
or notary public; 
 
II. Information required for requesting status as a Customs Service 
Auxiliary of the substitute enterprise: 
 
(a) Name and identity of the staff me mber 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) 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;  and the address of this place. 
 
III. Documentation common to applic ations for substitution under the 
Regime and status as a Customs Service Auxiliary: 
 
(a) The substitution document indicated in Article 43 of these 
Regulations; 
 
(b) copy of the certificate from a certified public accountant containing a 
detailed inventory of the goods th at have been entered by the 
substituted enterprise under the terms of the Regime and showing the G/SCM/N/211/CRI 
Page 64  
 
  receipt of the original certificate by the Customs Control Office from 
the beneficiary enterprise; 
 
(c) on the basis of the certificate mentioned in the previous 
subparagraph, the substituted enterp rise shall identify the goods that 
will be transferred to the substitute  enterprise and the goods that will 
be definitively re-exported or imported.  If there are goods definitively re-exported or imported,  it shall provide the documents 
that demonstrate the performance of such operations, where applicable; 
 
(d) a copy of the notice published in a national newspaper announcing 
the enterprise's intention to substitute the Regime; 
 
(e) certificate of legal personality issued not more than three months 
previously for the substitute enterp rise and the enterprise substituted; 
 
(f) special power of attorney if the application is made by a person other 
than the legal representative, with e xpress mention of the fact that the 
power of attorney authorizes him to submit the application for substitution and acquisition of th e status of Customs Service 
Auxiliary; 
 
(g) copy, certified by a public notary, of the front and back of the 
identity documents of the legal representative of the substitute 
enterprise and of the staff member who will deal directly with the 
National Customs Service; 
 
(h) copy, certified by a public notary, of the substitute enterprise's legal 
certificate; 
 
(i) if the applicant is a natural person, the following shall also be 
included: 
 
(i) Copy, certified by a public notary, of the front and back of 
the applicant's identity document; 
 
(ii) document issued by the Co sta Rican Social Security Fund 
certifying that the applicant does not work for the Costa 
Rican State, its autonomous or semi-autonomous institutions or State-owned enterprises, pursuant to Article 29 bis of the 
General Customs Law; 
 
(iii) certificate from the Offenders Register (to be procured 
directly from the entity responsible for labour matters)." 
  " 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 only be authorized within a park .  If a warehouse is located in a park under 
a jurisdiction different to that of the principal plant, customs control shall be carried out by 
the Customs office with jurisdiction for the location of the warehouse.  G/SCM/N/211/CRI 
 Page 65 
 
 
   
Inward clearance into national customs territory , import and export under the Regime may be 
carried out from such warehouses provided that th ey are suitable for the reception, inspection 
and clearance of goods in conformity with th e Customs legislation in force, subject to 
authorization by the Customs authority. 
 
For movements of goods between the principal plant and the authorized warehouse, the appropriate Transit Customs Declaration shall be u sed;  this shall not be required if both are 
located within the same park.  The foregoing sh all be without prejudice to the proper internal 
monitoring and inventory records which the be neficiary shall undertake so as to enable 
satisfactory control." 
  " Article 55. - Change of Regime.   If a beneficiary transfers to the Inward Processing 
Regime, it shall comply with the procedure fo r relinquishing the Duty-Free Zone Regime and 
at the same time commence the procedure for ad mission to the Inward Processing Regime, in 
accordance with the corresponding regulations. 
 
After relinquishment of the Duty-Free Zone Regi me has been authorized and admission to the 
Inward Processing Regime has been notified, th e beneficiary shall provisionally retain the 
status of Customs Service Auxiliary in the duty-free zone category for a period of up to 
15 working days to enable it to complete outsta nding formalities.  The Directorate shall give it 
provisional authorization as a Customs Service Auxiliary in the inward processing category, 
which shall be effective for 15 working days. 
 
Within this period, the enterprise shall comple te the customs declaration for the purpose of 
payment on the merchandise, goods, machinery and equipment under the Regime and shall 
proceed with the formalities required for ad mission to the Inward Processing Regime." 
  " Article 59. - Effective entry of the vehicle or transport unit under the Regime.   In order 
to bring in the vehicle and/or transport unit under the Regime, once exemption has been 
granted by the Ministry of Finance, the benefi ciary shall complete the customs declaration in 
accordance with established procedure. 
 
Once inward clearance of the vehicle has b een authorized, the National Customs Service 
computer system shall automatically transmit the information electronically to the Public Property Register for registration and for obtaining the special "ZFE" number plates." 
 
 " Article 63. - Additional obligations of park management enterprises.   In addition, the 
following obligations shall apply to  park management enterprises: 
 
(a) To notify the competent Customs Control Office and PROCOMER of any 
change of premises, leasing of new warehouses or any non-routine movement 
of enterprises based in the park; 
 
(b) to keep an updated record of enterprises installed in the park; 
 
(c) in the event of suspension of benefits  or suspension of the status of Customs 
Service Auxiliary enjoyed by beneficiar ies based in the park, it shall prevent 
the exit of any goods without prior authorization from COMEX or the 
Customs Control Office, whichever applies.  In both cases, these bodies shall inform the park management ente rprise of the suspension ordered; 
 G/SCM/N/211/CRI 
Page 66  
 
  (d) to enforce the decisions and directives issued by the Directorate in terms of 
their responsibility as Custom Service Auxiliaries; 
 
(e) immediately to notify the customs post, the Directorate, the DGT and 
PROCOMER of any cessation of operations by an enterprise based in the 
park; 
 
(f) to equip the customs post with the telephone lines required for its 
communications; 
 
(g) to equip the customs post with the furniture, fixtures and services required for 
its satisfactory operation; 
 
(h) to provide a security force for the pa rk, to ensure the safety of goods and 
persons within the park, and to mo nitor compliance with requirements 
regarding the entry, presence and exit of persons, vehicles and goods, and to 
ensure its proper functioning; 
 
(i) as of the commencement of operations, to put in place general regulations on 
the operation of the park, including prov isions on the obligations of the park 
management enterprise, the obligations  of enterprises located in the park, 
procedures applicable to control of entry and exit of materials and goods, 
persons, vehicles and transport units, c ontrol of services provided by the park 
and other regulations to be complied with  by the park in accordance with the 
legislation in force.  These regulations shall be notified to users and shall be 
displayed in a prominent location within the park;  in addition, they shall be 
made available to PROCOMER, the Directorate and the Customs Control 
Office when required.  The park management enterprise shall conduct 
training activities targeted at beneficiaries based in the park and the security guards on the provisions in the regulations and shall ensure proper compliance therewith; 
 
(j) to maintain access to the park  and its roads in good condition; 
 
(k) to implement the project strictly  in accordance with the terms of the 
resolution granting Regime status; 
 
(l) to provide services in an efficient manner to the beneficiaries based in the 
park.  For this purpose, a survey of satisfaction with the services provided to 
beneficiaries based in the park sha ll be conducted annually and shall be 
forwarded to PROCOMER, together with the annual report; 
 
(m) to supervise correct application of the Laws and regulations relating to the 
administration and operation of the park; 
 
(n) to designate a place where employees can receive training, hold meetings and 
assemblies and ensure that it is maintained in good condition; 
 
(o) after having complied with the minimum level of initial investment, 
management enterprises may dispose of property, including industrial 
facilities and developed areas that constitute the said minimum level of investment, provided that the park still operates as such and its minimum infrastructure is not affected, in the terms set out in these Regulations.  In the  G/SCM/N/211/CRI 
 Page 67 
 
 
  case of substitute management compani es, the minimum investment shall be 
deemed to have been made if it is  shown that the management company 
substituted made the investment in the te rms prescribed in this subparagraph, 
and that the park is still operating as such without affecting its minimum 
structure in the terms set out in these Regulations; 
 
(p) to comply with the master plan for the development of the park as set out in 
the application for admission to the Regime.  For these purposes, the management enterprise shall indicate in its annual operating report the manner in which it has implemented the said plan, as well as the level of 
compliance.  Any change in the master plan for the development of the park 
shall be authorized in advance by PROCOMER; 
 
(q) to comply with the provisions of ot her relevant Laws and regulations, and 
with any instructions issued by PROC OMER and the Directorate within their 
areas of competence." 
  " Article 66. - Commencement of activities.   Regime beneficiaries shall commence their 
activities no later than the date stated in the relevant resolution granting Regime status.  
PROCOMER may grant extensions to the dead line for commencement of activities, following 
a substantiated request from the enterprise to  this effect, provided that the date of 
commencement of production operations is no la ter than three years from the publication of 
the resolution granting Regime status.  If for reas ons attributable to the enterprise's production 
process an extension to the aforementioned three- year period is needed, an authorization from 
the Executive shall be required, subject to justification from the enterprise. 
 
In setting the date for commencement of ac tivities and extensions of the deadline, 
consideration shall be given to the details provided by the applicant in its application, the 
nature of the activity to be carried out, and th e time required to generate an income from the 
activity so that the characteristics of e ach specific project are taken into account. 
 
If the enterprise commences production activities be fore the deadline set in the relevant 
resolution granting Regime status, it sha ll notify the Operations Management Unit 
accordingly prior to the end of the financia l year during which it commenced operations, 
providing documentation substantiating such  commencement.  After the corresponding 
technical examination has been concluded and where appropriate, within five working days, 
PROCOMER shall notify the Directorate, the Customs Control Office, the DGT and COMEX 
of the date of commencement of opera tions so that it can be registered." 
  " Article 71. - Admission to the Regime under various categories.   Enterprises covered by 
the Duty-Free Zone Regime may be classified in  one or more of the categories described in 
Article 17 of the Law. 
 
 If an enterprise is classified in more than one  category, the following rules shall be followed: 
 
I. Processing industry according to th e category in Article 17(f) of the Law 
and other categories.  If one of the categories in which the enterprise is 
classified is that described in Article 17 (f) of the Law, with the rate of income 
tax regulated in Article 21 ter of the Law, the following rules shall apply: 
 
(a) Income tax benefit:  each activit y shall be given the income tax 
benefit corresponding to each category, according to the terms in Article 21 ter and Article 20(g) of the Law, respectively; G/SCM/N/211/CRI 
Page 68  
 
   
(b) separate accounts:  the enterp rise shall keep separate accounts for 
sales, assets, costs and expenditure for each activity. 
 
II. Enterprise in categories that have different income tax benefits.  If the 
enterprise is engaged in various activ ities which have different types of 
exemption or different income tax rate s, the enterprise shall keep separate 
accounts for sales, assets, costs a nd expenditure for each activity. 
 
III. Enterprise in categories that have the same income tax exemption.  If the 
enterprise is engaged in various activ ities which all enjoy the same income 
tax exemption, in accordance with the te rms in Article 20(g) of the Law, it 
shall not be necessary to keep separat e accounts for sales, assets, costs and 
expenditure for each activity.  
 
If the enterprise starts to engage in ac tivities subject to different income tax 
rates or exemptions, it shall keep separ ate accounts, as provided in the section 
above. 
 
IV. Sales on the domestic market in the case of activities under different 
categories.  If an enterprise comes under several categories, sales on the 
domestic market for each activity shall be  governed by the rules applicable to 
each category, in accordance with the terms provided in the second paragraph of subparagraph (a) of Article 21 ter and Article 22 of the Law, respectively.  
 
If one of the enterprise's categories is that  of sale, pursuant to Article 17(b) of 
the Law, the enterprise may not sell the part corresponding to its sales activity 
on the domestic market." 
  " Article 72. - Calculation of the tax on profits.   It shall be the responsibility of the Ministry 
of Finance's DGT to lay down the requirements, obligations, rules and other procedural and monitoring mechanisms applicable  to enterprises covered by the profits tax exemption or 
concession determined in the Law. 
 
If a change in the percentage of the exempti on entitlement of a Regime beneficiary (100 per 
cent, 75 per cent, 50 per cent or 0 per cent) occurs in the course of a financial year for profits  tax (either the ordinary financial year or a non- standard financial year as authorized by the 
DGT), or there is a change in the rate of income tax as described in subparagraph (d) of 
Article 21 ter (0 per cent, 5 per cent, 6 per cent, 7.5 pe r cent or 15 per cent, as applicable), to 
calculate the tax payable for the period in ques tion the enterprise shall proceed as follows:  on 
the taxable income or net income, according to  the financial statements for the respective 
periods in the financial year for which the exemp tion percentage or releva nt rate applied, the 
tax shall be calculated allowing for the exem ption percentage or rate applicable, as 
appropriate.  The total tax payable will then be  the sum total of the amounts so obtained." 
  " Article 73. - Plants situated within or outside the GAMA.   If a beneficiary enterprise has 
plants situated within and outside th e GAMA, the following rules shall apply: 
 
I. Income tax concessions 
 
(a) Income tax concessions:  depending on whether the plant is situated 
within or outside the GAMA, it shall benefit from the duration and other conditions of exemption or the income tax rate applicable to it  G/SCM/N/211/CRI 
 Page 69 
 
 
  as provided in subparagraphs  (g) of Articles 20 and 21 ter of the 
Law; 
 
(b) separate accounts:  the enterp rise shall keep separate accounts for 
sales, assets, costs and expenditure fo r the plants situated within the 
GAMA and those outside the area. 
 
II. Enterprise with plants that have the same percentage of exemption from 
income tax.  If an enterprise has several plants and they all have the same 
percentage of exemption from income tax, in accordance with the terms of 
Article 20(g) of the Law, it shall not be necessary to keep separate accounts. 
 
If the enterprise starts to engage in activities subject to different rates or income tax exemptions, it shall keep separate accounts, as provided in the section above." 
 
 " Article 81. - Procedures for sa les to the domestic market.  Regime beneficiary enterprises 
may make sales in national customs territory in accordance with terms in Article 22 of the 
Law, and subject to the taxes and proce dures applicable to any import from abroad. 
 
For the purposes of exit of goods from the Regime and for their import, the beneficiary shall 
be in possession of a commercial invoice in any of the means permitted by the legislation in 
force, to serve as the documentary basis for th e transaction for tax, customs and statistical 
purposes.  In the case of services involving the u se of materials and goods (e.g. spare parts), a 
breakdown of these shall be provided on a separate invoice, and the appropriate customs declaration shall be submitted or forwarded.   The 25 per cent or 50 per cent limits, as 
applicable, pursuant to Article 22 of the Law, shall be calculated on the value of total sales, 
and shall be applied in each financial year to Regime beneficiaries which make domestic 
sales. 
 
Beneficiaries in the category provided in Artic le 17(f) of the Law may make domestic sales, 
as provided in Article 21 of the Law and Article 136 of these Regulations." 
 
 " Article 82. - Sales projection report.   Before making such sales, the beneficiary enterprise 
shall forward to PROCOMER a breakdown of th e projected sales for the period in question, 
on the form drawn up for this purpose.  PROCOM ER shall transmit this information to the 
Directorate using the means specified." 
 
 " Article 83. - Rules applicable to  sales to the domestic market.   Enterprises which sell to 
the domestic market shall pay income tax on a pr o-rata basis according to the value of the 
goods and services brought in to the national cust oms territory as a percentage of the total 
value of the enterprise's sales and services, in accordance with the financial year applicable. 
 
For the purposes of compliance with the provisions of the last paragraph of Article 22 of the 
Law, the taxes and customs procedures applying to any like imports from abroad shall apply 
to goods that are brought in to the domestic mark et.  Such taxes shall be paid upon entry into 
national customs territory. 
 
The proportion of goods and services brought in to the natio nal customs territory shall be 
calculated according to the following formula: 
 
VALUE DS (Domestic sales) x 100
 = Percentage of domestic sales 
Value TS (Total sales) G/SCM/N/211/CRI 
Page 70  
 
   
PROCOMER shall verify that the information given by beneficiary enterprises on sales to the 
domestic market in their annual operating reports  is in conformity with the percentage 
authorized by Article 22 of the Law and that  the corresponding income tax has been paid. 
 
In addition to the foregoing, the following ru les shall apply in assessing the amount of tax 
payable on goods cleared through customs in to the national customs territory: 
 
(a) The customs value of the goods shall be calculated in accordance with the 
customs valuation procedures in force at the time of acceptance of the 
customs declaration; 
 
(b) liability for taxation and the tax base shall be governed by the provisions in 
the General Customs Law and amendments thereto; 
 
(c) the self-assessment and payment of the taxes applicable shall be governed by 
the relevant provisions of the definitive importation regime in force; 
 
(d) PROCOMER shall provide the competent Customs Control Office with a 
projection of total sales and domestic sales, submitted by the enterprise for the relevant financial period, expressed in f.o.b. values in Central American 
pesos, so that the Customs office may arrange for the relevant checks to be 
made.  On the basis of the inform ation submitted by the beneficiary 
enterprise in its annual operating report, at the end of the financial year PROCOMER shall submit to the compet ent Customs Control Office, within 
five months following the end of the ordinary financial year or, where 
applicable the non-standard financial year  authorized for a specific enterprise 
by the DGT, the final amount in colons of the total and domestic sales made by the beneficiary, and the percentage of the sales made on the domestic market, so that the beneficiary can pay the corresponding taxes.  The foregoing shall be without prejudice to the jurisdictions established in Article 12 of the Law." 
 
 " Article 84. - Percentage of subcontracting.   Beneficiaries admitted to the Regime in 
accordance with Article 17(a) and (f) of th e Law may subcontract a portion of their 
production or production process to any beneficiari es of the Regime or to any natural or legal 
person established within the national customs te rritory, provided that at least 50 per cent of 
the total production volume of the enterprise covered by the Regime is produced by the 
subcontractor." 
  " Article 87.  Period for subcontracting.   The permitted period fo r subcontracting shall be 
set by PROCOMER according to the needs of th e party concerned, and may be extended if 
PROCOMER considers that the reasons for granting the authorization still apply.  
PROCOMER shall inform the Directorate of this period using the means specified." 
  " Article 88. - Length of stay of goods in the facilities of the subcontracted enterprise.   
Beneficiaries may temporarily clear machinery an d equipment to be used exclusively in the 
subcontracting arrangement through customs into  the national customs territory for a period 
not to exceed that authorized by PROCOM ER.  Goods other than the machinery and 
equipment to be used in the subcontracting arrangement may not remain for more than 
six months outside the beneficiary's facilities. 
  G/SCM/N/211/CRI 
 Page 71 
 
 
  If the production process so requires, bene ficiaries may subcontract, under the same 
subcontracting arrangement, to several enterpri ses at once.  For this purpose, a customs 
declaration shall be submitted for each of the enterprises subcontracted when goods are 
moved from the beneficiary's installations to such enterprises. 
 
When a beneficiary needs to move goods cleared  temporarily into national customs territory 
to another enterprise authorized in the subcont racting arrangement in order to continue the 
production process, a new customs declaration sh all not be required and the Customs Control 
Office shall be informed in writing or el ectronically, in accordance with the relevant 
procedures determined by the Directorate for this  purpose, at the latest on the working day 
following the date on which the goods were moved. 
 
The subcontracted enterprise may not use the 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 sold in national customs territory by the 
subcontracting beneficiary.  The 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 clearance.  The subcontracting a rrangement shall be subject to the customs 
control and inspection determined in the General Customs Law and its implementing 
Regulations.  In such cases, the goods shall remain covered by the Regime and under the 
responsibility of the beneficiary, who shall be liable for any damage or loss affecting the 
goods cleared into national customs territory on a temporary basis and shall pay the relevant 
duties and taxes, pursuant to Article 24 of the Law." 
  " Article 92. - Registration of subcontractors.   Enterprises wishing to be subcontracted by 
beneficiary enterprises shall register with PROCOMER 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 the 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 subcont racting arrangement, and allow the 
authorities to verify the circumstanc es if they consider it appropriate. 
 
Using the appropriate means, PROCOMER shall tr ansmit the list of registered enterprises to 
the Directorate and to the DGT, together with the time-limit authorized for each 
subcontracting arrangement." 
  " Article 94. - Procedures for controlling the transit or transfer of goods.   The procedures 
for controlling the transit or transfer of goods to or from a duty-free zone, including exit, 
routing, reception, unloading and completion of  transit formalities, shall be governed by the 
provisions contained in the General Customs Law and its implementing Regulations, as well 
as the related procedures and guidelines issued  by the Directorate.  In the case of inward 
customs clearance of materials and goods, the relevant customs rules on the definitive import 
regime shall also apply." G/SCM/N/211/CRI 
Page 72  
 
   
 " Article 95. - Goods regularly shipped.   Goods regularly shipped between beneficiary 
enterprises under this Regime and the Inward Pr ocessing 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 showing 
the operations conducted each month. 
 
The single customs declaration shall be submitted within the first five days of each month.  
For the foregoing purposes, the Directorate shall keep a register of enterprises authorized to 
submit such declarations subject to verificati on of the nature of the operation conducted by 
the beneficiary enterprise." 
  " Article 95 bis. - Suspension of international or domestic transit for commercial 
purposes in the installations of duty-free zone enterprises.   The Customs authority may be 
requested to suspend international or domestic transit more than once in order to unload, 
break up, consolidate or load goods intended for inward clearance, export or re-export. 
 
The aforementioned operations may take place in the Customs facilities, in a Customs warehouse, in the beneficiary's installations or in  those of an authorized economic operator, if 
it has been authorized for this purpose. 
 
The beneficiary shall take delivery of the goods and shall immediately inform the carrier and 
the Customs Control Office of their conformity.  If there are any differences between the goods declared in transit and those received according to the clearance declaration, the 
beneficiary shall comply with the relevant provisions determined by the Directorate. 
 
Failure to respect the proper procedures on the part of the beneficiary shall mean that the 
enterprise may not continue to make use of this facility." 
  " Article 97. - Repair, maintenance and reconstruction of transport units.   B e n e f i c i a r y  
enterprises whose authorized activities involve th e repair, maintenance and/or reconstruction 
of transport units may enter these under the Duty-Free Zone 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 beneficiary enterprise under the Duty-Free Zone 
Regime and shall be entered unde r the regime by means of a cu stoms declaration.  After the 
relevant procedure has been completed and the export declaration under the Regime has been 
processed, the transport unit may remain in nationa l 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 te rritory under the Temporary Import Regime and 
needs to undergo one of the aforementioned procedures, it may also be cleared into the installations of the duty-free zone enterp rise by means of a customs declaration. 
 
The beneficiary enterprise shall keep an i nventory 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 co rresponding regular and penalty procedures." 
  " Article 98. - Use of the customs declaration and seals.   Any entry, movement or exit of 
goods involving a customs transaction shall re quire the submission or forwarding of a 
customs declaration, except for donations, dest ruction, purchase of services and movement of  G/SCM/N/211/CRI 
 Page 73 
 
 
  goods from the principal plant to the secondary plant or warehouse if both are located within 
the same duty-free zone park.  The foregoing shall be without prejudice to the internal 
controls and adequate inventory records which the enterprise is required to maintain for 
monitoring purposes.  A customs declaration sh all also be required for the exchange or 
transfer of goods between beneficiaries even wh en the beneficiaries are situated within the 
same duty-free zone park. 
 
The customs seals supplied by PROCOMER sha ll also be used, except in the case of 
temporary inward customs clearance operati ons, donations, subcontr acting arrangements, 
destruction, local purchases or movements or sales between enterprises located in the same 
duty-free zone park, and imports entering by sea or land provided that the transport unit has 
seals affixed by the supplier or international fre ight carrier.  The use of seals shall not be 
required for movement of materials and goods from the principal plant to the satellite or 
secondary plant or warehouses located within the same park." 
 
 " Article 100. - Criteria for temporary inward customs clearance.   Beneficiaries may 
effect temporary inward clearance into nationa l customs territory for machinery, vehicles and 
equipment in provenance from duty-free zones where this is for the purpose of repairing, maintaining or modifying the goods. 
 
Such goods may also be subject to temporary in ward clearance for trade fairs, staff training, 
company presentations or demonstrations, pr ovided that the activity does not constitute 
manufacture forming part of the production pr ocess of the enterprise based in the duty-free 
zone. 
 
The maximum period for temporary inward clearance in the aforementioned cases shall be 
six months as of the acceptance of the customs declaration." 
  " Article 101. - Transmission of the customs declaration.   The beneficiary shall forward the 
relevant customs declaration to  the competent Customs Control Office, and subject the goods 
to inspection by the random check method." 
 
 " Article 103. - Inward customs clearance of goods for production activities outside the 
area authorized as a duty-free zone.   Where the resolution granting Regime status has 
authorized production activities outside the area authorized as a duty-free zone, pursuant to 
Article 24 of the Duty-Free Zone Regime La w and Article 10.I(l) of these Regulations, the 
enterprise may obtain temporary inward clear ance into national customs territory for the 
machinery, equipment, materials and goods indicated in the aforesaid resolution.  The 
temporary inward clearance may be for a maximum period of one year.  At the expiry of the said period, if the aforementioned goods have not  been returned to the installations of the 
beneficiary enterprise, it shall pay the taxes, fines and interest of any kind corresponding to 
their import. 
 
The submission of a temporary inward clearance  customs declaration for goods for activities 
outside the authorized area, showing details of the goods to be cleared and indicating the 
period during which they will remain and the ex act location(s) of the goods in the national 
customs territory shall be required for inward  clearance into national customs territory. 
 
Whenever the beneficiary wishes to move th e goods temporarily cleared into the national 
customs territory to a location other than the one originally declared, either for reasons related 
to the authorized activity or because of force majeure  or an act of God, a new customs 
declaration shall not be required, but the Customs Control Office shall be informed 
accordingly in writing or electronically, in accordance with the relevant procedures G/SCM/N/211/CRI 
Page 74  
 
  determined by the Directorate, at the latest  on the working day following the date on which 
the goods were moved. 
 
The enterprise shall keep an up-to-date record of  the goods cleared.  In exercise of its powers, 
the Directorate may at any time undertake an insp ection in order to verify the proper use and 
finality of the goods, for which it may request the aforementioned record. 
 
Goods that have undergone inward clearance into  national customs territory shall be used 
exclusively for the activity authorized under th e Regime and failure to comply with this 
provision may lead to annulment of the authori zation for temporary inward clearance of the 
goods covered by the resolution granting Regime  status, without prejudice to other penalties 
applicable, as provided in Article 32 of the Law.  In such cases, Regime beneficiaries shall be 
liable for any damage or loss affecting the goods  cleared into national customs territory on a 
temporary basis and shall pay the relevant duti es and taxes, except in the case of destruction 
of the goods because of force majeure  or an act of God, duly substantiated to the satisfaction 
of the Customs authority." 
  " Article 109. - Wastage, by-products and scrap.   In accordance with the provisions of 
Article 16 of the Law, any beneficiaries deciding to dispose of wastage,  by-products or waste 
shall notify the municipality for the location wher e they are based to that effect, in writing.  
The municipality shall come to collect the wast age, by-products or waste within a period of 
three days from such notification, and shall draw up a report, to be signed by the official at 
the customs post. 
 
If the municipality fails to appear within the a bove deadline, or if it indicates that it is not 
interested in taking possession of these items, th e beneficiary may donate them, destroy them 
or import them, subject to payment of tax in accordance with the provisions of this Chapter. 
 
Municipalities may conclude agreements with beneficiaries for the purpose of authorizing 
them to deliver directly to a third party,  designated by the municipality and expressly 
specified in the agreement, th e wastage, by-products or w aste whose disposal has been 
decided by the beneficiaries.  The said authori zation may be granted for renewable periods of 
six months maximum. 
 
After the parties have signed the agreement, the Regime beneficiary enterprise shall not be 
required to notify the municipality every time it de cides to dispose of wastage, by-products or 
waste.  In such cases, it shall deliver them di rectly to whoever has been designated in the 
agreement, on the terms and conditions set out th erein, and a report shall be drawn up on the 
electronic form supplied by the Directorate, and signed by a representative of the duty-free zone enterprise and the third party receiving the donation." 
  " Article 110. - Containers, packaging and wr apping, computer equipment and electronic 
waste, and other waste derived from its activities.   Beneficiaries may at any time freely 
dispose of containers, packaging and wrappi ng used in transporting raw materials, goods, 
machinery and equipment acquired under the Regime.  Where such goods are donated, 
destroyed or recycled, the beneficiary shall reco rd the said operations in its books so that the 
Customs authority may at any time verify thei r finality without having to be present at the 
time of donation, destruction or recycling. 
 
If the beneficiary wishes to recycle or reuse computer equipment or electronic waste or other waste derived from its activities, it shall forwar d a customs declaration showing that the said 
goods have left the Regime, subject to co mpliance with the corresponding technical 
requirements of the competent government authority.  The aforesaid waste shall be exempt  G/SCM/N/211/CRI 
 Page 75 
 
 
  from payment of any import duty or internal tax provided that it is intended for recycling or 
reuse in accordance with the terms in the sec ond paragraph of Article 20(a) of the Law. 
 
Where the containers, packaging, wrapping, computer equipment or electronic waste are re-exported, the corresponding customs declaration shall be completed." 
 
 " Article 122. - Competence of PROCOMER.  PROCOMER shall receive, assess and 
process applications from parties interested in joining the Regime, and monitor the investment 
amounts and other criteria laid down in the re solution granting Regime status, within a 
maximum period of five working days. 
 
PROCOMER shall also receive and assess the a nnual reports to be submitted by beneficiary 
enterprises and act in the matters expressly d esignated in these Regulations as falling within 
its area of competence. 
 
COMEX shall initiate any appropriate penalt y procedures within a maximum period of 
one month, in each case on the basis of technical reports and recommendations from PROCOMER and from the competent agencies of  the Ministry of Finance.  In cases of 
suspension of benefits, revocation or relinqui shment of the Regime, COMEX shall forward 
the corresponding resolution to the management en terprise of the park where the beneficiary 
enterprise is situated so that it ma y exercise the appropriate controls. 
 
All matters relating to the monitoring and aud iting of customs operations and tax exemptions 
are within the area of competence of the releva nt agencies of the Ministry of Finance, and 
where applicable of PROCOMER, where its involvement is provided for in the Law or in these Regulations. 
 
If in the course of exercising its powers PROCOMER detects the possible presence of tax irregularities, it shall immediately notify the Ministry of Finance accordingly for the 
appropriate legal action.  Similarly, the competent agencies of the Ministry of Finance shall notify PROCOMER of any irregularity they detect which may provide the basis for the initiation of a penalty procedure pursuant to Artic le 32 of the Law.  On the basis of that 
information and its own investigations, wh ere applicable, PROCOMER shall forward a 
recommendation to COMEX for the initiation of th e appropriate penalty procedure as soon as 
possible, in accordance with the said Article 32." 
  " Article 124. - Activities by beneficiaries.   Beneficiaries under any of the categories 
specified in Article 17 of the Law may, un der the Regime's incentives, engage in the 
following activities: 
 
(a) Lease or sublease independent buildi ngs or industrial facilities to other 
duty-free zone enterprises; 
 
(b) lease or sublease areas in accordance with  the terms specified in Article 20 of 
these Regulations; 
 
(c) engage in innovation, resear ch and development activities; 
 
(d) provide training to their employees in any of the enterprise's spheres of 
activity; 
 G/SCM/N/211/CRI 
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  (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) carry out any of the activities described in subparagraphs (a), (b) and (c) of 
Article 18 of the Law." 
 Article 4. -  The title of Chapter XVII and Articles 105, 106, 107 and 108 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 Regul ations implementing the Duty-Free Zone 
Regime Law, are hereby am ended to read as follows: 
 
"CHAPTER XVII 
 
Other transactions covered by the Regime " 
 
 " Article 105. - Production and re-export of pallets.   After completing the corresponding 
production process, beneficiaries whose authorized production activity is the manufacture or 
repair of pallets shall proceed with their proper identification.  The beneficiary shall complete 
the customs declaration and shall comply with  the customs procedures determined for exit 
from their installations.  When such pallets  leave the national customs territory with 
Costa Rican goods for export, the exporter shall submit the export declaration, identifying the 
natural or legal person that manuf actured or repaired the pallets. 
 
Pallets may remain in national customs territo ry for a maximum period of 15 working days.  
This period shall be calculated from the date on which the export declaration submitted by the 
beneficiary was approved. 
 
The beneficiary shall keep an inventory of the numbers and destination of the pallets 
produced and make it available to the Customs authority when so required." 
  " Article 106. - Export of consigned goods.   When the beneficiary exports goods that are the 
result of a sale on consignment, it shall submit the customs export declaration and comply 
with all the customs procedures prescribed  for the Regime.  The aforesaid customs 
declaration shall indicate the f.o.b. value and the aggregate value, and the pro forma invoice shall be attached, which shall indicate the sa me information as the final commercial invoice. 
 
If all the goods exported on consignment are not sold, the beneficiary may clear them into the 
Regime subject to submission of the inward customs clearance declaration, indicating the 
number of the export declaration covering their exit, provided that the goods have not been 
subject to any processing or modification excep t those processes needed to maintain them. 
 
In the case above or if the goods are sold at a price other than that declared on the pro forma 
invoice, within a maximum period of ten working days as of the date of the final invoice, the 
beneficiary shall send electronically to the Central Bank of Costa Rica, using the means provided for this purpose, the amended informati on on the final sale:  price, f.o.b. value and 
quantity.  Likewise, the enterprise shall make  the corresponding adjustment in its books. 
 
In both cases, an amendment to the customs expor t declaration under the Regime shall not be 
required." 
  G/SCM/N/211/CRI 
 Page 77 
 
 
   " Article 107. - Procedure for payment of taxes.  In any of the cases indicated in these 
Regulations, the Customs Control Office shall collect the taxes payable, following the 
procedure laid down in the General Customs Law. 
 
After the Customs Control Office has signed the act ordering payment of the amounts 
outstanding, the beneficiary shall have a period of  five working days, pursuant to Article 61 
of the General Customs Law, calculated from the respective notification, in which to pay the 
outstanding tax." 
  " Article 108. - 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 goods: 
 
(a) Quantity; 
 
(b) description:  model, series, size.  Where these details do not exist, the 
enterprise shall indicate any other element to permit the goods to be identified; 
 
(c) value by line; 
 
(d) unit price; 
 
(e) unit price and value in terms of the 'Incoterm' applicable. 
 
Regime beneficiaries, including services ente rprises, which engage in export or domestic 
sales, shall forward electronically to the Central Bank, using the means provided for this purpose, a copy of the commercial invoice, givi ng the number of the customs declaration, 
within a maximum period of ten working days as of the date of acceptance of the declaration, accompanied by an electronic report on the aggr egate value of the goods consigned in the 
aforesaid declaration." 
 Article 5. - The title of Chapter XXIII and Articles 127 and 128 are hereby amended, and new 
Articles 129 and 130 added to 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 Septembe r 2008, entitled Regulations 
implementing the Duty-Free Zone Regime Law, and shall read as follows: 
 
"CHAPTER XXIII 
 
Logistics services enterprises " 
 
 " Article 127. - Inward customs clearance of goods by logistics services enterprises.   
Enterprises which provide logistics services under the Duty-Free Zone Regime may clear 
goods for temporary storage and for supplying the logistics services authorized and their subsequent delivery to the final consignee,  indicating in the Customs Declaration of 
Temporary Inward Clearance into the Regime and the following documents: 
 
(a) The transport document showing the be neficiary enterprise's entitlement to 
dispose of the goods; 
 G/SCM/N/211/CRI 
Page 78  
 
  (b) packing list and sworn statement indicating that the goods are going to the 
beneficiary enterprise for temporary storage and the supply of other authorized logistics services; 
 
(c) if the goods were not the subject of a commercial sale: 
 
(i) Packing list showing the value of the goods;  or 
 
(ii) document issued by the beneficiar y enterprise in the form of a sworn 
statement showing the value of the goods." 
 
 " Article 128. - Re-export of goods by logistics services enterprises.   For the purposes of the 
exit of goods temporarily cleared into the Re gime by logistics services enterprises, the 
following documents shall be submitted together  with the customs re-export declaration: 
 
(a) Customs Declaration of Temporary Inward Clearance into the Regime; 
 
(b) invoice for logistics services; 
 
(c) transport document; 
 
(d) packing list." 
  " Article 129. - Inward clearance of goods into the Regime by logistics services 
enterprises.   Where a logistics services enterprise ne eds to deliver goods temporarily cleared 
to another beneficiary enterprise covered by the Regime or to enterprises under the Inward 
Processing Regime, the latter shall complete th e Customs Declaration of Inward Clearance 
into the Regime, following the customs pr ocedure determined for this purpose." 
  " Article 130. - Definitive import of goods cl eared by logistics services enterprises.  Where 
a logistics services enterprise needs to deliver goods  temporarily 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 th e customs procedure determined for this 
purpose. 
 
Definitive imports of goods from duty-free zones, originally inwardly cleared by a beneficiary 
enterprise in the logistics services category, sh all not be considered domestic sales of goods 
for the purposes of the beneficiary enterprise. 
 
Imported goods may be cleared at the installati ons of the logistics beneficiary enterprise. 
 
At the time of definitive import of the goods, th e non-tariff taxes and regulations in effect 
shall apply.  Where relevant, the tariff benefits  provided in international trade agreements 
shall also apply. 
 
Goods shall be covered by a commercial i nvoice issued by the selling enterprise. 
 
The logistics services enterprise shall issue an  invoice for the logistics services provided." 
 
Article 6. -  A new Chapter XXIV and Articles 131, 132, 133, 134, 135, 136, 137, 138, 139, 140, 141, 
142, 143, 144 and 145 are hereby added to  Executive Decree No. 34739-COMEX-H of 
29 August 2008, published in Insert No. 35 of the Official Journal La Gaceta  No. 181 of  G/SCM/N/211/CRI 
 Page 79 
 
 
  19 September 2008, entitled Regulations implementi ng the Duty-Free Zone Regime Law, and shall 
read as follows:  
"CHAPTER XXIV 
 
Provisions on processing enterprises in the ca tegory provided in Article 17(f) of the Law " 
 
"SECTION I 
 
Application for admission to the Regime 
 
Article 131. - Admission requirements for processing enterprises.   Enterprises wishing to be 
admitted to the Duty-Free Zone Regime as proc essing enterprises in the category provided in 
Article 17(f) of the Law shall submit an applica tion to PROCOMER on the form drawn up for this 
purpose, and the provisions in Chapter III of these Regul ations shall apply.  It 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 sh all carry out a new project in a sector 
deemed to be strategic according to the terms of Article 21 bis and the corresponding 
Regulations or shall be situated outside the GAMA. 
 
 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 special features of the new investment to be made under the Regime may be transferred or made in another country.  For these 
purposes, the enterprise shall prove that  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 the competent public authority in the 
corresponding country indicating the reasons for which the project could be 
implemented in or transferred to a nother country.  These documents shall 
indicate the country or countries in which this new project could be implemented; 
 
(b) the controlling entity of the ente rprise seeking admission to the Regime 
operates abroad, outside Central America and Panama, at least one 
processing plant similar to the pl ant to operate in Costa Rica. 
 
Proof of compliance with the requirement  indicated in this  subparagraph shall 
require the submission of the following documentation: 
 
1. Sworn statements issued by the le gal 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: G/SCM/N/211/CRI 
Page 80  
 
   
(i) The controlling entity has a similar plant abroad, outside 
Central America and Panama, together 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. 
 
2. Document issued by the competen t authority or body in the country 
of origin indicating the following: 
 
(i) The legal status or equiva lent document showing the legal 
existence of the controlling entity; 
 
(ii) the legal status or equiva lent document showing the legal 
existence of the entity operati ng the similar processing plant 
abroad, outside Central America and Panama; 
 
(iii) permit, business licence or e quivalent document authorizing 
the operation of the similar processing plant abroad, outside 
Central America and Panama. 
 
In all the aforementioned cases, the documen ts issued abroad shall be submitted duly 
certified by the consulate and written in th e 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 stat ements shall be issued by the legal 
representative of the entity making the decl aration 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 partially 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 th at 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 payment 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 percenta ge of exemption from taxes on the import 
of machinery, equipment and raw materi als and profits tax shall be reduced  G/SCM/N/211/CRI 
 Page 81 
 
 
  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 applica tion for admission to the Regime and the 
information shall be updated annually by mean s of a sworn statement contained in the 
annual operating report.  PROCOMER sha ll transmit the said statements to the 
Ministry of Finance so that the latter may draw the conclusions it considers appropriate." 
 
 " Article 132. - Admission require ments for supplier enterprises.   Supplier enterprises 
which supply enterprises in duty-free zones with at least 40 per cent of their total sales may be 
admitted to the Duty-Free Zone Regime.  Su ch enterprises shall meet the new and total 
investment requirements laid down in Articles 5 and 7 of these Regulations, but shall not be required to meet the other provisions laid  down in Article 131 of these Regulations." 
 
 " Article 133. - Admission requirements for enterprises classifi ed as Megaprojects.   
Enterprises seeking admission to the Regime in the category provided in Article 17(f) of the 
Law and granting of the incentives provide d in subparagraph (e) of Article 21 ter of the Law 
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. 
 
Likewise, the aforesaid enterprises shall 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 l east 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 amo unt of the investment, on the basis of 
the annual operating report, 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. 
 
Such enterprises shall also make and maintain  minimum and total investment, pursuant to the 
terms laid down in Articles 5, 7 and 135 of these Regulations." 
 
"SECTION II 
 
New investment " 
 
 "Article 134. - Amount of new investment.   Processing enterprises classified in the category 
provided in Article 17(f) of the Law shall comply with the minimum amounts of new and total investment laid down in Articles 5, 7 and 131 of these Regulations." 
 G/SCM/N/211/CRI 
Page 82  
 
   " Article 135. - New investment.  In the case of enterprises in the category provided in 
Article 17(f) of the Law, new investment shall be considered investment in new fixed assets 
that meet the following criteria: 
 
(a) The assets are owned by the Regime app licant, and have been acquired by the 
applicant as from the date of the lodgement of the application for such 
Regime status; 
 
(b) in the case of movable fixed assets, they are new or used assets in provenance 
from outside the country, or new assets acquired in Costa Rica; 
 
(c) fixed assets subject to a guarantee trust whose trustor and/or trustee is a 
Regime beneficiary, provided that that they are duly registered in the accounting records of the beneficiary.  The foregoing shall be without prejudice to the preference given to the State by Law for the recovery of 
exempted taxes; 
 
(d) improvements to property owned or leased by the beneficiary." 
 
"SECTION III 
 
Sales on the domestic market  
 
 " Article 136. - Sales on the domestic market  by enterprises classified in the category 
provided in Article 17(f) of the Law.   Beneficiary enterprises covered by the Regime in the 
category provided in Article 17(f) of the Law ma y put all their goods on the domestic market 
without application of the provisions in Article 22 of the Law. 
  The customs procedures applying to any like imports from abroad shall apply to goods put on 
the domestic market and in the case of taxes the following rules shall apply: 
 
 (a) Payment of import tariffs on inputs 
 
For final goods put on the domestic market, import tariffs shall only be payable on the imported inputs used in the final product.   For these purposes, the enterprise shall 
list in the corresponding customs declarati on the inputs actually used in the final 
good. 
 
If the imports comply with the corresponding rules of origin, the beneficiary enterprise may apply the relevant tariff,  in accordance with the terms of the 
international agreement applicable.  Fo r these purposes, the beneficiary enterprise 
shall comply with the requirements and procedures laid down in the free-trade 
agreements in force at the time of bringi ng the goods into the domestic market. 
 
 (b) Payment of taxes on the final product 
 
Non-tariff taxes on the final product shall be payable on goods brought into the 
domestic market. 
 
 (c) Value of the goods 
 
The customs value of the goods shall be cal culated in accordance with the customs 
valuation procedures in force at the time of acceptance of the customs declaration.  G/SCM/N/211/CRI 
 Page 83 
 
 
   
 (d) Liability for taxation 
 
Liability for taxation and the tax base shall be governed by the provisions of the General Customs Law and amendments thereto. 
 
 (e) Self-assessment and payment 
 
The self-assessment and payment of the non- tariff taxes on the final product shall be 
governed by the relevant provisi ons of the Final Import Regime. 
 
 (f) Rate of or exemption from the income tax applicable 
 
Sales to the domestic market by beneficiar y enterprises in the category provided in 
Article 17(f) of the Law shall be subject to the income tax rate or exemption provided 
in subparagraph (d) of Article 21 ter and Article 20(g) of the Law.  The foregoing 
shall be in conformity with the resolution granting Regime status to the beneficiary 
enterprise." 
 
"SECTION IV 
 
Income tax incentives 
 
 "Article 137. - Credit for reinvesting profits in new fixed assets.   Enterprises belonging to 
the category provided in Article 17(f) of the Law may deduct from the amount of the income tax 
payable the tax credit given for reinvestment of  profits in new fixed assets, provided that the 
following requirements are met: 
 
(a) The profits have been earned durin g the period in which the enterprise 
operated under the Duty-Free Zone Regi me as from the date on which it was 
admitted to the category provided in Artic le 17(f) of the Law and, in addition, 
they have been duly registered in the enterprise's books; 
 
(b) the new fixed assets are goods that are useful, necessary and relevant for 
carrying out the activity for which the enterprise has been admitted to the 
Duty-Free Zone Regime; 
 
(c) movable fixed assets shall be new; 
 
(d) new fixed assets acquired using profits generated in accordance with 
subparagraph (a) above.  The assets ma y be buildings, land, machinery or 
equipment needed to earn current or potential income, either exempt or subject to the Income Tax Law, needed  for the activities of the enterprise 
covered by the Duty-Free Zone Regime. 
  The reinvestment in goods owned by the benefici ary shall be considered to have been made 
on: 
 
(a) In the case of movable property purchased locally, the date of the invoice; 
 
(b) in the case of imported movable goods, th e date of acceptance of the relevant 
customs declaration; 
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  (c) in the case of immovable property, the date on which it was duly registered in 
the beneficiary's name in the Registry of Property Ownership of the National Register. 
  Enterprises receiving this benefit shall submit at the end of each financial year a statement 
that complies with the requirements laid dow n by the DGT for this purpose, listing the 
investment made under this heading." 
  " Article 138. - Credit for training costs.   Enterprises in the category provided in 
Article 17(f) of the Law may deduct tax credits for the following from the amount of income 
tax payable: 
 
(a) Costs incurred within or outside the country for training of Costa Rican 
personnel or personnel resident in Costa Rica who work for the enterprise in Costa Rica, as defined in Article 4 of these Regulations; 
 
(b) costs incurred within Costa Rica for the training of personnel of supplier 
enterprises, classified as micro, small or medium-sized enterprises, according 
to the registers of the Ministry of the Economy, Industry and Trade. 
  The cost of training mentioned in the subparagr aphs above incurred by beneficiary enterprises 
shall meet the following criteria: 
 
(a) The costs are related to the enterprise's activities or affect the production for 
which it was admitted to the Duty-Free Zone Regime in accordance with Article 17(f) of the Law; 
 
(b) costs for training personnel in any of  the beneficiary enterprise's spheres of 
activity shall be limited to those useful, necessary and relevant to generate current or potential taxable income and shall also comply with the provisions 
in the last paragraph of Article 8 of the Income Tax Law; 
 
(c) in the case of training costs fo r enterprises supplying the beneficiary 
enterprises covered by the Regime, before  the beneficiary incurs such costs 
and becomes eligible for the credit, it sh all be verified that the supplier is 
registered as a micro, small or medium-sized enterprise with the Ministry of the Economy, Industry and Trade. 
 
 The costs of training incurred by beneficiar y enterprises for training supplier enterprises 
organized by PROCOMER, the INA, universities and other public institutions may also be 
deducted from income tax;  this shall also apply to grants gi ven by beneficiary enterprises for 
local training given to enterprises supplying beneficiary enterprises covered by the Regime, according to the terms laid down in the Law and the Regulations." 
 
 " Article 139. - Procedure for calculating the tax credit for reinvestment of profits, and 
personnel training.   Calculation of the tax credit for enterprises included in the category 
provided in Article 17(f) of the Law shall take into account the following aspects: 
 
(a) Reinvestment of profits in new fixed a ssets jointly with training costs referred 
to in Article 134 of these Regulations  shall constitute direct income tax 
credit, but may not exceed 10 per cent of the beneficiary's taxable income for each financial year, as defined in Article 14 of the Income Tax Law.  The  G/SCM/N/211/CRI 
 Page 85 
 
 
  credit shall be deducted from the amount  of income tax payable and under no 
circumstances shall give the beneficiary a credit balance; 
 
(b) when it is not possible to credit income tax for all the new fixed assets 
acquired by reinvesting profits in a particular financial year, the surplus 
investment in assets may not be credited to subsequent financial years; 
 
(c) if training costs exceed the 10 per cent of taxable income for a financial year, 
the amount in excess of 10 per cent for training may be used as a credit for any of the subsequent consecutive five financial years, provided that the 
credit of these costs not used, plus th e reinvestment of profits in each 
financial year and the new training costs incurred in subsequent years do not exceed the aforementioned limit of 10 per cent of the tax base for each financial year indicated." 
 
 " Article 140. - Deferred payment of tax.   Enterprises in the category provided in 
Article 17(f) of the Law which also meet the re quirements determined in  subparagraph (e) of 
Article 21 ter of the Law, or enterprises situated out side the GAMA, shall have the right to 
defer payment of income tax provided that there is no direct or indirect distribution of dividends or benefits generate d by the activities of the enterprise covered by the Regime to 
the enterprise's controlling entity, or for up to a maximum period of ten years, whichever 
occurs first. 
 
Where there is a controlling entity and dividend s are distributed to other shareholders, the 
beneficiary enterprise may continue to defer paym ent of the tax.  Nevertheless, if there is no 
controlling entity, payment of the tax may be  deferred for up to a maximum period of 
ten years. 
 
In addition to its accounting records, the en terprise shall keep a detailed record of the 
following amounts for each financial year: 
 
(a) One hundred per cent of the dividends; 
 
(b) the dividends distributed and the corresponding financial year; 
 
(c) deferred income tax; 
 
(d) deferred income tax paid and the co rresponding financial year, as a result of 
the existence of one of the circumstan ces mentioned in the paragraph above; 
 
(e) the respective interest paid, as well as any charges or penalties applicable. 
 
 The beneficiary shall submit to the DGT twice a year a sworn statement giving details of the 
amount under each of the headings in the record  indicated in the paragraph above for each 
month.  The information required may be modified by the DGT by means of a resolution of general scope and shall be s ubmitted using the means and form determined by the DGT. 
 
 Failure to comply with this formal requirement or to supply relevant information that is false 
or inaccurate shall result in loss of the tax bene fit for the period in which it occurred, leading 
to immediate payment of the tax deferred, the interest thereon, penalties and surcharges in 
accordance with the Code of Tax Regulations a nd Procedures, which shall be calculated from 
the time at which the outstanding amount was due until it is effectively paid. 
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   If the beneficiary distributes dividends directly or indirectly, it shall commence with the 
earliest period for which deferred payment has been allowed and, in addition, any amount 
distributed as dividends to the controlling entity in a specified financial year for which payment of income tax has been deferred shall oblige the beneficiary to pay the total amount of the tax deferred for the said financial year w ith the corresponding interest, in the terms laid 
down in subparagraph (g) of Article 21 ter of the Law, as provided in this Article. 
 
 At the time when the enterprise decides to di stribute dividends to the controlling entity, it 
shall pay the amount of the principal of the inco me tax originally deferred, together with the 
respective interest and adjustments, using the form and means of payment determined by the 
DGT. 
 
 In order to calculate the interest, the av erage basic lending rate for six-month deposits 
calculated by the Central Bank of Costa Rica sh all be used, taking into account any variations 
during the time for which the tax was deferred, until the enterprise distributes the dividends or 
until the maximum period of ten years of deferred payment has ended. 
 
 The principal to be paid shall be the amount of the income tax originally deferred updated by 
the variation in the selling rate for the colón to the dollar of the United States of America 
calculated by the Central Bank of Costa Rica, as from the time at wh ich the payment should 
have been made up to the day of the month prior to that in which the enterprise distributed 
dividends or the day on which the maximum peri od of ten years for deferred payment ended.  
Under no circumstances shall the amount of the principal of the tax payable be less than the 
amount originally declared as deferred tax. 
 
 If the enterprise decides to pay the tax before distributing dividends or before the end of the 
10-year period, the provisions in the paragra ph above shall apply to the calculation of the 
interest and updating of the tax originally deferred. 
 
 The time-limit for payment shall commence from the day following that on which the 
enterprise distributed dividends or from the date on which the maximum period of ten years for deferred payment ended, whichever occurs first. 
 
 If payment is made outside the legal time-limit,  deferred and current interest shall be paid 
together with the principal, without prejudice to  the penalties determined in the Code of Tax 
Regulations and Procedures, as follows: 
 
(a) The tax originally deferred, updated by  the variation in the selling rate for the 
colón to the dollar of the United States of America as calculated by the Central Bank of Costa Rica, as from the time at which the payment should have been made until the day of the month prior to that in which the enterprise distributed dividends or the day on which the maximum period of ten years for deferred payment ended; 
 
(b) current interest shall be paid until one of the two aforementioned 
circumstances occurs or the enterp rise decides to pay the tax before 
distributing dividends or before the end of the ten-year period; 
 
(c) current interest on the updated pr incipal until its effective payment; 
 
(d) the interest determined in Article 57 of the Code of Tax Regulations and 
Procedures as of the date following expiry of the time-limit allowed; 
  G/SCM/N/211/CRI 
 Page 87 
 
 
  (e) the fines and penalties applicable dete rmined in the Code of Tax Regulations 
and Procedures. 
  With regard to the period of limitation, this  shall be suspended or interrupted for the 
following: 
 
(a) The period of deferment for payment of the tax deferred; 
 
(b) the distribution of dividends; 
 
(c) ending of the ten-year period; 
 
(d) submission of proof of payment to the authorities; 
 
(e) failure to comply with the submission of a sworn statement providing 
information; 
 
(f) the submission of relevant information in false or inaccurate form. 
 
 If one of the aforementioned circumstances occurs, the period shall commence on 1 January of the calendar year following that on which the circumstance occurred." 
 
 " Article 141. - Reinvestment by processing enterprises in the category provided in 
Article 17(f) of the Law.  Processing enterprises classified in the category provided in 
Article 17(f) of the Law, whose initial new invest ment in fixed assets has been greater than or 
equal to two million dollars, the legal cu rrency of the United States of America 
(US$2,000,000) or the equivalent in local curre ncy, and which, on completion of four years 
since gaining Regime status, reinvest in the country, shall be entitled to additional exemption 
from payment of income tax, under the terms and conditions laid down in Article 20(l) and 
subparagraph (d) of Article 21 ter of the Law. 
 
 For the purposes of determining and quantifying the minimum initial investment, 
reinvestment and the additional exempt ion, the following rules shall apply: 
 
(a) Eligibility for this additional exemption shall be restricted to enterprises that 
have made an additional new investment in fixed assets under the Regime of at least two million dollars, the lega l currency of the United States of 
America (US$2,000,000).  For the purpose of determining this amount of 
initial new investment in fixed assets, th e parameters laid down in Articles 6 
and 8 of these Regulations shall apply. 
 
 Furthermore, for these purposes, initial investment shall be considered that 
made during the first three years of application of the Regime, i.e. the 
three years following the date on which the resolution granting Regime status 
was notified to the enterprise in question; 
 
(b) the enterprise shall have made the reinvestment after the expiry of four years 
from being granted Regime status, and befo re the start of the eighth year after 
being granted Regime status.  For these purposes, years shall be calculated as 
annual periods from the date on which th e resolution granting Regime status 
was notified to the enterprise; 
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  (c) the reinvestment must meet the requ irements for new investment in fixed 
assets, in accordance with the criteria laid down in Articles 6 and 8 of these Regulations; 
 
(d) the reinvestment percentage required under Article 20(l) of the Law in order 
to qualify for each additional year of ex emption for the seven point five per 
cent (7.5%) rate of income tax for up to  a maximum of four years, shall be 
calculated on the basis of the total investment in fixed assets, established in the resolution granting Regime status, as of the day of the expiry of four years from being granted Re gime status, or on the amount of 
two million dollars, legal currency of the United States of America 
(US$2,000,000) laid down in Article 20( l) of the Law, whichever is the 
larger; 
 
(e) each additional year for the seven point  five per cent (7.5%) income tax rate 
concession, for up to a maximum of four years, shall be calculated from the 
end of the last year on which the enterprise was given the rate of six per cent (6%) or five per cent (5%), as applicable  to an enterprise situated within or 
outside the GAMA, respectively.  For these purposes, years shall be 
calculated as annual periods from the date on which the enterprise first 
became entitled to the income tax concession, or from the date of 
commencement of production indicated in the resolution granting Regime 
status; 
 
(f) after expiry of the year or years of the additional income tax concessionary 
rate of seven point five per cent (7.5 %) corresponding to the enterprise, 
within the maximum of four years pursuan t to the Law, the enterprise shall be 
entitled to continue to receive the fifteen  per cent (15%) rate of income tax up 
to the expiry of the time-limit fo r that concession in accordance with 
subparagraph (d) of Article 21 ter of the Law; 
 
(g) to qualify for the additional income  tax rate concession of seven point 
five per cent (7.5%) laid down in subparagraph (d) of Article 21 ter of the 
Law as regulated in this Article, the en terprise shall make an application in 
writing to PROCOMER within three calendar months from the date by which it was required to make its additional rei nvestment, i.e. the date of expiry of 
seven years from being notified of the resolution granting Regime status. 
 
 The application shall be submitted on the form drawn up for this purpose by 
PROCOMER, accompanied by the documentation specified on the form, the purpose of which is to verify the amount, characteristics and dates of both the initial original investment and the additional reinvestments, in order to determine whether the requirements and conditions laid down in the Law and 
in these Regulations have been met.  If the application is not submitted by the 
due date, it shall be rejected; 
 
(h) PROCOMER shall examine the appli cation submitted and forward a report to 
COMEX, following the procedure set down in Chapter III of these 
Regulations.  If the Executive grants th e additional concession referred to in 
this Article, this shall be recorded as an amendment to the resolution granting 
Regime status.  Executive resolutions rejecting an application for an additional exemption in accordance with th is Article are subject to appeal for 
review pursuant to the Code of Administrative Litigation Procedures.  G/SCM/N/211/CRI 
 Page 89 
 
 
   
 In the case of processing enterprises in the category provided in Article 17(f) 
of the Law, as described in subparagraphs (e) and (h) of Article 21 ter of the 
Law, the procedure laid down in Article 70 of these Regulations shall be followed." 
 
"SECTION V 
 
Acquisition or takeover of enterprises " 
 
 " Article 142. - Acquisition or takeover of en terprises prior to admission to the Regime.   
Enterprises admitted to the Duty-Free Zone Regi me, under Article 17(f) of the Law, shall be 
totally or partly exempt from income tax or not subject to its payment in Costa Rica. 
  An enterprise shall not meet the foregoing require ment and shall therefore not be admitted to 
the Regime if the project or activities in whic h the applicant enterprise is engaged are the 
result of the acquisition or takeover in any fo rm of a legal person subject to payment of 
income tax in Costa Rica. 
  The foregoing requirement shall not be met eith er if the project or activities engaged in by a 
legal person applying for the Regime are the resu lt of the acquisition or takeover, in any form, 
of the principal assets of another legal person subject to payment of income tax in Costa Rica. 
  For this purpose, the appli cant enterprise shall submit a sworn statement, pursuant to the 
terms of Part IV of Article 131 of these Regulations. 
 
 If an enterprise in a duty-free zone acquires ass ets other than the assets deemed to be its 
principal assets, pursuant to the definiti on in Article 4 of these Regulations, from 
non-beneficiary enterprises, the customs pro cedures for clearance of such assets into the 
Regime shall be followed, accompanied by the relevant documentation, which shall be made 
available for inspection to show that the pur chase of the asset(s) does not prevent continuity 
of the production process or the production line in which the non-beneficiary enterprise used 
such assets.  The beneficiary enterprise sha ll indicate the acquisition of such assets in its 
annual operating report in the necessary detail.  PROCOMER shall forward this document to 
the Ministry of Finance so that the latter may take the appropriate steps." 
  " Article 143. - Acquisition or takeover of enterprises after admission to the Regime.   If 
the acquisition or takeover of enterprises re ferred to in subparagraph (c) of Article 21 bis of 
the Law takes place after the beneficiary has been  admitted to the Regime, the percentage of 
the exemption from tax on the import of machinery, equipment and raw materials shall be reduced on a pro rata  basis represented by the fixed assets subject to depreciation as a 
percentage of the beneficiary enterprise's total fixed assets subject to depreciation prior to the 
acquisition or takeover. 
 
 As regards the loss of profits tax concessions, the same percentage as that indicated in the 
preceding paragraph shall be applied as follows: 
 
(a) If the enterprise was given 100 per cent, 75 per cent or 50 per cent exemption 
from income tax, this percentage shall be reduced on a pro rata  basis 
represented by the fixed assets subject to depreciation acquired as a percentage of the enterprise's total fixed assets subject to depreciation.  In other words, the 100 per cent, 75 per cent or 50 per cent shall be multiplied G/SCM/N/211/CRI 
Page 90  
 
  by the percentage indicated and the ba lance subtracted from the 100 per cent, 
75 per cent or 50 per cent; 
 
(b) if the enterprise has a special rate of 0 per cent, 5 per cent, 6 per cent, 7.5 per 
cent or 15 per cent, the difference in percentage points compared to the 
regular rate determined in Article  15 of Law No. 7092 and amendments 
thereto shall be multiplied on a pro rata  basis represented by the fixed assets 
subject to depreciation acquired as a percentage of the enterprise's total fixed assets subject to depreciation and the balance added to the 0 per cent, 5 per cent, 6 per cent, 7.5 per cent or 15 per cent, as appropriate. 
 
 After PROCOMER has received the informati on pursuant to Article 142 of these Regulations, 
the enterprise shall complete th e customs declarations in order to formalize the inward 
clearance of the domestic or imported goods into the Regime which, as a result of the takeover, become part of the assets of the beneficiary enterprise.  If some of the imported 
goods benefit from some exemption, the appropriate  steps shall be taken in advance with the 
Directorate General of Finance. 
  Inward clearance by the enterprise subsequent  to the date of registration of the takeover 
merger or date of acquisition of the assets sha ll comply with the customs procedures in force 
and payment made in conformity with the per centage of the reduction not subject to tax. 
 
 Likewise, the reduction of the exemption or profits tax concession shall take effect as of the 
date of registration of the takeover merg er or the acquisition of the assets and the 
self-assessment declaration for the corres ponding financial year shall be submitted. 
 
 The foregoing shall be without prejudice to the inspection responsibilities of the customs and 
taxation authority in order to verify payment of the corresponding taxes. 
  For these purposes, the enterprise shall keep an ancillary register of assets acquired, 
containing the information to be indicated in the general resolution taken by the DGT." 
 
 " Article 144. - Acquisition or takeover application.  Beneficiary enterprises under the 
Regime which, during their period of operation, wish to take over or acquire an enterprise 
pursuant to subparagraph (c) of Article 21 bis of the Law, shall notify PROCOMER in 
advance.  For the acquisition of fixed assets s ubject to depreciation, the enterprise shall 
provide the following documents: 
 
1. Application for modification of the resolution granting Regime status, duly 
signed by the legal representative of the enterprise, indicating the new levels of investment and jobs.  If the enterpri se has several plants, the application 
shall specify which is to be the principal plant; 
 
2. certificate from an approved pub lic accountant providing the following 
information: 
 
(a) The enterprise's total fixed assets subject to depreciation entered 
under the Regime; 
 
(b) total fixed assets subject to depreci ation to be acquired or taken over; 
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  (c) percentage of total fixed assets subject to depreciation acquired or 
taken over compared to the beneficiary enterprise's total fixed assets subject to depreciation prior to the acquisition or takeover. 
  In the case of a takeover merger, the benefi ciary enterprise under the Regime shall inform 
PROCOMER accordingly within a maximum peri od of one month of registration in the 
Public Register.  It shall also provide the following documents: 
 
1. Notarial certificate indicating the date of registration of the merger in the 
Public Register and details of the enterprises merged; 
 
2. certified copy of the registered deed recording the merger agreement; 
 
3. copy of the notice published in the Official Journal La Gaceta ; 
 
4. application for modification of the resolution granting Regime status, duly 
signed by the legal representative of the enterprise, indicating the new levels of investment and jobs.  If the enterpri se has several plants, the application 
shall specify which is to be the principal plant; 
 
5. certificate from an approved pub lic accountant providing the following 
information: 
 
(a) The enterprise's total fixed assets subject to depreciation entered 
under the Regime; 
 
(b) total fixed assets subject to depreci ation to be acquired or taken over; 
 
(c) percentage of the total fixed assets subject to depreciation acquired or 
taken over compared to the beneficiary enterprise's total fixed assets subject to depreciation prior to the acquisition or takeover. 
 
 PROCOMER shall forward copies of the corres ponding documents to the Ministry of Finance 
so that the DGT and the Directorate can make the proportional reductions in exemption for the import of machinery, equipment a nd raw materials and the profits tax. 
  If the beneficiary enterprise wishes to engage in  activities in the installations of the enterprise 
taken over, it shall comply with the provis ions in Article 35 of these Regulations." 
 
"SECTION VI 
 
Transfer of enterprises 
  "Article 145. - Transfer to the category provided in Article 17(f) of the Law.   Beneficiary 
enterprises indicated in Article 17(a) of th e Law may request transfer to the category 
indicated in Article 17(f) of the Law, provi ded that they meet the following criteria: 
 
(a) The project is to be implemented 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; G/SCM/N/211/CRI 
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(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 ex empt from, or is not subject to, income 
tax, according to the terms laid down in Article 3 of the Income Tax Law." 
 Article 7. -  A transitional provision IV is hereby ad ded to 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 Regulatio ns implementing the Duty-Free Regime Zone Law, to read as 
follows: 
  " Transitional Provision IV. -  Mindful of the repeal in the fifth paragraph of Article 20(g) of 
the Law and the subsequent repeal of Article 73 of the Regulations amended by this Decree, 
for the purposes of any inspection, the financial y ears ending before the entry into force of the 
repeal of the aforementioned legal provisi on shall be applied in accordance with the 
aforementioned Article 73 of the Regulations for all purposes." 
 Article 8. -  These provisions shall take effect from the date of their publication in the Official Journal 
La Gaceta . 
 
 Done at the Office of the President of the Republic, San José, 28 April 2010. 
 
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