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U.S. Department of State
Costa Rica Country Commercial Guide
Office of the Coordinator for Business Affairs



CHAPTER I.

                          EXECUTIVE SUMMARY


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This Country Commercial Guide (CCG) presents a comprehensive look at 
Costa Rica's commercial environment through economic, political and 
market analyses.

The CCGs were established by recommendation of the Trade Promotion 
Coordinating Committee (TPCC), a multi-agency task force, to consolidate 
various reporting documents prepared for the U.S. business community.  
Country Commercial Guides are prepared annually at U.S. Embassies 
through the combined efforts of several U.S. government agencies.

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The Republic of Costa Rica, the size of West Virginia (19,575 square 
miles with an estimated population of 3.3 million), depends heavily on 
both agricultural and industrial imports.  Although progress has been 
made in liberalizing its economy, promoting its domestic industry and 
enhancing its role as a global trading partner via bilateral and 
multilaterial agreements, the strong role of state monopolies and the 
current fiscal crisis (public sector deficit in 1994 was 7.5 percent) 
are also significant factors in the economy. 

As member and/or signatory of the World Trade Organization (WTO [and 
GATT]), the Central American Common Market (CACM) and numerous 
international agreements and treaties (involving intellectual property 
rights, the Uruguay Round, etc.), Costa Rica continues to play an 
important and positive role in efforts to promote a hemisphere-wide free 
trade area (Free Trade Area for the Americas).  

While foreign direct investment in Costa Rica is difficult to track, it 
is estimated that some $280 million flowed into Costa Rica in 1993, with 
the bulk of that investment from the U.S., Japan, Germany, Spain and 
Korea.  The growth of new investments, however, has slowed somewhat in 
the last two years.  Textile and electronic component maquilas, located 
in most cases in attractive free trade zones, employ over 70,000 Costa 
Ricans.  

With an unemployment rate of 4.2 percent, a few maquila companies have 
ventured to neighboring Nicaragua (where the unemployment rate is nearly 
60 percent) in search of a more eager labor supply.  Costa Rica's 
economists lament the exodus, but at the same time see it as part of a 
natural evolution to a strengthened high-tech sector.  The country's GDP 
increased 4.5 percent in 1994 and is predicted to increase between 2.5 
and 3.5 percent in 1995.

While Costa Rica's industrial base is growing, it is still an 
agriculturally-based economy where 47 percent of its economic base is 
food-related (imports and exports).   

However, in 1993 tourism surpassed banana exports as the nation's 
largest income producer.  Over 764,000 tourist visited Costa Rica in 
1994 (with an additional 100,000 day visitors arriving via cruise 
ships).  While tourism continues to play a dynamic role -- producing 
revenue over $600 million in 1994 and employing over 62,000 -- the 
tourism sector may have reached its saturation level.  Nonetheless, 
numerous, sometimes controversial, hotel and resort construction 
projects are still planned in the northwest, Guanacaste, region.

According to the U.S. Trade Representative the U.S. trade surplus with 
Costa Rica in 1994 was $220 million (* See Note), or $214 million more 
than in 1993.  U.S. merchandise exports to Costa Rica were $1.9 billion 
in 1994, up $320 million or 20.7 percent from 1993.  Costa Rica was the 
United States' thirty-seventh largest export market in 1994.  

----------------------------------------------------------------
*  NOTE:  These figures differ from those provided by Costa Rican 
government sources which appear in other sections of this CCG.  The 
differences are attributable to factoring in the maquiladora industry 
and trade with Puerto Rico. 
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Principal U.S. exports to Costa Rica in 1994 included: kraft paper and 
paper board, cars and other vehicles (primarily for transporting 
persons), corn, oil (from petroleum, not crude) and soybeans.  

U.S. imports from Costa Rica totaled $1.6 billion in 1994, or 6.7 
percent more than in 1993.  Principal imports from Costa Rica to the 
U.S. included: bananas, plantains, coffee, meat, melons, dates, figs, 
pineapples and avocados.  The Economic Commission for Latin America 
(CEPAL) reported that Costa Rica experienced Latin America's second 
largest export ratio per capita in 1994.

Summary of Commercial and Major Project Opportunities:

There are over 10 major infrastructure opportunities promoted by an 
interministerial commission which include enlarging major highways, 
designing and constructing new highways, designing and constructing the 
Tempisque Bridge, constructing additional piers and/or terminals at the 
country's three ports and constructing the proposed new international 
airport.  A new public works concession law should provide a mechanism 
to complete these major infrastructure projects without further 
exacerbating the government's precarious fiscal situation.  

Costa Rica's commercial environment is user-friendly with widespread 
national receptivity to U.S. products and services.  Some best-prospect 
opportunities exist in telecommunication equipment, hotel and restaurant 
equipment, construction equipment, medical equipment, water resources 
equipment and services, sporting goods and recreational equipment, port  
equipment, franchising (especially non-food related) and commercial 
endeavors related to the nation's recent boom in large shopping malls -- 
a relatively new phenomenon in Costa Rica -- to name a few. 

In the agricultural area, bulk products such as yellow corn, soy
beans, wheat and rice, as well as some consumer-ready products
such as fresh fruits, canned fruits and vegetables, snack foods
and fruit juices present good U.S. export opportunities.

Other Commercial Considerations:

Consistent with Costa Rica's overall affinity for the U.S., the Costa 
Rican consumer (said to be the most sophisticated and demanding in the 
region) has a strong appetite for U.S. products and services.  

Commercial activity, in all sectors, is supported by numerous, organized 
chambers and associations.  There are approximately 85 U.S. Fortune 100 
and Fortune 500 companies operating in Costa Rica.  Most have been in 
this market for 10-25 years.  The dynamic and politically active Costa 
Rican-American Chamber of Commerce (AMCHAM) is composed of some 290 
companies.

With some of the world's highest rainfall (59"-177" annually) Costa 
Rica's richly diverse and attractive topography provides opportunities 
not only in "eco-tourism," where it has gained fame, but also in joint 
implementation initiatives whereby foreign firms are able to participate 
in the creation of "carbon sinks (sequestering)" in Costa Rica to offset 
greenhouse gas emmissions produced in the U.S.   As well, it remains, by 
far, the Central American country with the best infrastructure, 
electrical, telecommunication, health and educational systems.

Due to its perennial spring climate, stability and hospitable 
atmosphere, the country has attracted some 30,000 U.S. ex-patriates as 
well as immigrants from such countries as Spain, Israel, Germany, China 
and Japan, all of whom play a role in creating competition for U.S. 
products and services.

While there are few significant tariff or non-tariff commercial trade 
barriers, some U.S. citizen property owners have had to contend with 
difficult and lengthy land expropriation cases.  Another investment 
dispute involves the court-ordered termination of a U.S. cellular 
telephone company's concession to provide cellular services.  The matter 
is currently under negotiation.  

With the exception of the country's monopolies on some critical services 
(e.g. telecommunications, electricity, insurance, petroleum refining, 
banking services, etc.), and deficiencies in the intellectual property 
regime, there are no trade barriers that affect the importation of most 
goods to Costa Rica.

Caution, and the use of reliable lawyers, is strongly encouraged prior 
to investing and/or doing business in Costa Rica.


CHAPTER II. 

                        ECONOMIC TRENDS AND OUTLOOK

A.  MAJOR TRENDS AND OUTLOOK

Costa Rica 's economy grew at a healthy pace during 1994.  Gross 
Domestic Product (GDP) in constant terms (1966 colones) increased 4.5 
percent, considerably less than the 6.4 percent rate of GDP growth 
during 1993, but still well above the 2.3 percent annual population 
increase.  GDP growth continued to be fuelled by a strong tourist 
sector, promoting Costa Rica's natural wonders and offering niche-
oriented eco-tourism.  Costa Rica, with 1/4 of its land dedicated to 
national forests, parks and reserves, has become a destination for 
affluent visitors interested primarily in nature tourism.  Growth in the 
textile/apparel area, an important source of investment and employment, 
slowed significantly during 1994, registering an increase of only 3.6 
percent, versus increases of 10.6 percent in 1993 and 33.6 percent in 
1992.

Unemployment increased slightly to 4.2 percent of the labor force during 
1994, up from 1993's rate of 4.1 percent.  Real salaries increased about 
6.9 percent, down slightly from the 8 percent gain realized in 1993.

The consumer price index (CPI) increased 19.9 percent in 1994, more than 
double the 9.8 percent increase experienced in 1993.  The CPI for 1995 
is expected to increase 18 to 23 percent.

From December 1993 to December 1994, the colon devalued 8.9 percent.  
The pace of the daily mini-devaluations has picked up substantially in 
the first months of 1995 and the outlook is for an annual devaluation 
rate of at least 17 percent.

According to official figures, poverty seems to have decreased slightly 
from 1993.  In July 1994, about 15.8 percent of the homes were at or 
below the poverty level as defined by the the United Nations Economic 
Commission for Latin America (ECLA), about half of which (7.1 percent) 
is said to be in extreme poverty.

The fiscal situation of the Central Government worsened during 1994.  
While total spending increased 45.4 percent (to a level equivalent to 
21.3 percent of GDP), revenues increased only 15.2 percent (equivalent 
to 14.7 percent of GDP), a deficit that was met mostly by internal 
borrowing.  Government borrowing drove interest rates back to 1993 highs 
(34 percent charged by State commercial banks to prime customers, 41 
percent charged by private banks to prime customers), and increased the 
government's outstanding internal debt to about 2.6 billion dollars.  
The government has announced important spending reductions and proposed 
corresponding increases in taxes, which have yet to be approved by the 
Legislative Assembly, in an effort to reduce the fiscal deficit of the 
public sector from 7.5 percent of GDP during 1994 to about 4.5 percent 
of GDP during 1995.

During the past year, some government and business leaders have worried 
publicly that Costa Rican firms are losing their competitive edge due to 
the highest interest rates in Central America, slower foreign 
investment, proposed higher taxes, and an 8 percent across-the-board 
tariff increase (March 1995) to generate revenues to help cover the 
government's large fiscal deficit.  The mood in the business community 
is marked by uncertainty as to whether the government will be able to 
implement a macroeconomic plan to lower interest rates plus concerns 
that slowed foreign investment and tourism may not provide the boost 
this economy needs in 1995. The GDP is expected to increase 2.5 to 3.5 
percent in 1995.  Both investment and tourist income are likely to 
increase (though at a less robust pace than in previous years), 
international coffee prices -- though volatile -- continue significantly 
higher than 1993's record lows, and the country has managed to retain a 
sizable share of banana exports to the European Union, despite the 
continuing conflict with U.S. banana marketing companies.  


B.  PRINCIPAL GROWTH SECTORS

Sectors directly involved in servicing tourists grew considerably during 
1994, continuing the trend of recent years. Although there is no precise 
statistical information to measure this growth, the importance of 
tourism can be deduced indirectly.  According to the tourist board (ICT) 
761,448 visitors came to Costa Rica during 1994, in comparison with 
376,000 in 1989.  At the same time, the number of available rooms 
increased from 5,456 in 1989, to above 14,000 in 1994, causing many 
hoteliers and owners of tourist businesses to complain about 
overcapacity and lower occupancy rates.  Income from tourism is 
estimated at over $685.5 million in 1994, a 19 percent increase over 
1993.    Employment in the tourist sector is estimated to be above 
62,000, with a similar number of workers employed in jobs directly 
connected to tourism.

New laws, changes in existing laws and changes in the makeup of 
government monopolies will also provide opportunities for growth and 
investment by U.S. companies.  For example:

  -- Law (#7200, 1990) of Energy Co-generation:  Allows private entities 
to provide up to 30 percent of the nation's electricity.  Fifteen 
percent of all privately generated energy can be under the build, 
operate and transfer arrangement, with up to 65 percent foreign 
ownership, a 20 mw production limit and a 20 year operation period prior 
to transfer to the government.

  -- Public Works Concession Law:  Passed in January 1994, this law will 
allow foreign entities, together with local companies, to build, operate 
and transfer (BOT) public works (roads, bridges, highways and, with 
legislative approval ports and airports).  The first concession tender 
(highway amplification of 42 kilometers) will be ready for foreign 
participation in July 1995.   Other BOT tenders are expected over the 
coming years.

The growth rates for construction (5.1 percent), commerce (4.7 percent), 
transportation, storage and communications (7 percent), and financial 
intermediation (6.6 percent), indicate continued growth of tourist 
activities, the most dynamic sector of the economy.

Agriculture, the most traditional of the production sectors, employing 
about 21.4 percent of the labor force, grew only 2.9 percent in 1994, 
despite some small increase in banana exports and significant increases 
in coffee exports.  Industry, the largest contributor to GDP and 
employer of 17.9 percent of the labor force, grew 4.7 percent in 1994.

The public sector grew 2.5 percent in 1994, with the addition of 12,000 
new public-sector employees during the period April to December 1994.


C.  THE GOVERNMENT'S ROLE IN THE ECONOMY

In Costa Rica the direct participation of the state in certain economic 
activities is still widely accepted as legitimate and beneficial.  
Though this sentiment is eroding, it remains difficult to enact serious 
reform of some of the principal state institutions because of the broad 
popular and political support they enjoy.  Reform must be shown to be 
absolutely necessary to develop the needed consensus for a change.

State participation in the economy is not new.  Tobacco and alcohol 
production were state monopolies by 1830 (alcohol production continues 
as a monopoly) in order to finance the government of the young republic.  
Insurance was made a state monopoly in 1929, in order to buy out a 
foreign private monopoly.  National Health (Caja Costarricense de Seguro 
Social-CCSS) was founded in 1940.  The largest commercial bank, Banco 
Nacional de Costa Rica (BNCR), was created by the state in 1920, with a 
currency issuance department later separated to form the Central Bank in 
1950, resulting from the Bretton Woods agreements soon after the 
conclusion of WWII.  

Other institutions were created as solutions to specific political 
problems during the depression between WWI and WWII, or in order to buy 
out foreign monopolies: the Atlantic coast railroad; ICE (Instituto 
Costarricense de Electricidad), the electricity and telephone monopoly; 
and RECOPE (Refineria Costarricense de Petroleo), the state petroleum 
refinery.

In 1994, the business community stepped up calls for an opening of 
sectors heretofore dominated by the state.  Efforts to repeal the state 
monopolies on fuel (RECOPE), demand deposits, insurance (INS-Instituto 
Nacional de Seguros), electricity and telecommunications (ICE), there by 
allowing competition from private companies, may be more likely to 
succeed than attempts simply to close state enterprises.  The Figueres 
administration has generally rejected the sale of state enterprises as  
a way of raising revenue to cope with the government's fiscal crisis.  
At present, only the state liquor monopoly (FANAL-Fabrica Nacional de 
Alcohol) seems likely to be privatized.  The administration appears to 
prefer an approach whereby certain state enterprises (e.g. the state 
insurance monopoly and the state commercial banks) would compete in a 
more open environment.  There are current proposals which would allow 
private banks access to the Central Bank's rediscount window and to 
offer checking and savings accounts.  The primary reason for the 
government's desire to retain control of certain profitable state 
enterprises is that they yield a substantial surplus to the consolidated 
public sector budget.  Without the profits from the state banks, RECOPE 
and ICE, the government would be unable to finance itself without asking 
the Legislative Assembly for major new taxes.

On May 18, 1994, the Legislative Assembly enacted the long-awaited 
Hydrocarbons Law, which permits private parties, including foreign 
companies, to explore for and eventually to  exploit petroleum.   The 
few attempts to find oil to date have been unsuccessful.

A new Public Works Concession Law also affords foreign companies the 
opportunity to participate in major projects via the BOT scheme.


D.  BALANCE OF PAYMENTS SITUATION

During 1994, Costa Rica's balance of payments improved from  a historic 
deficit in the trade portion of the accounts during 1993.  While exports 
FOB reached $2,224 million, imports CIF amounted to $3,087 million, 
yielding a deficit of $863 million in the trade portion of balance of 
payments accounts.  The trade deficit is nearly matched by capital 
inflows and tourism income.  The 8.5 percent increase in exports 
experienced in 1994 is the smallest increase since 1991, primarily 
because of slower growth in draw-back exports and non-traditional 
exports (4.9 percent increase in 1994 vs. 15.8 percent increase in 
1993).  Income from traditional exports grew 13.9 percent in 1994 (4.0 
percent in 1993), primarily as a consequence of increased world coffee 
prices.  Total imports grew 7.0 percent in 1994, a considerable 
reduction from the 18.2 percent increase during 1993.  Imports of 
consumer goods, capital goods and raw materials for industry all grew in 
1994, but at much slower rates than during 1993.
The balance on current account by the end of 1994 was $447 million, a 
drop of $110 million in comparison with 1993.  Costa Rica's foreign debt 
totalled $3,188 million on December 31, 1994, an increase of $30 million 
from the previous year's end.


F.  QUALITY OF INFRASTRUCTURE

1.  Roads:  
Costa Rica enjoys a well-developed road system of more than 30,000 Km, 
although much of it is in disrepair.  All parts of the country are 
accessible by road.  The main highland cities in the center of the 
country are connected by paved all-weather roads with the Atlantic and 
Pacific coasts and, through the Pan-American Highway, with Nicaragua and 
Panama, the neighboring countries to the North and the South.  Costa 
Rica needs to complete the Pacific coastal highway (and repair large 
sections of existing roadway), build a new road along the Atlantic 
coast, and possibly a coast-to-coast highway (about 300 Km) across the 
Northern plains of the country.  New road construction projects and the 
urgent need to repair existing roads and highways are probably the most 
pressing infrastructure needs of the country, made challenging with 
Costa Rica's very mountainous terrain (elevations reach over 12,000 
feet) and heavy rainfall (59"-177" annually).

It is hoped that a new public works concession law (under the auspices 
of the Ministry of Public Works and Transportation [MOPT]) will enable 
major roads, highways and bridges to be constructed more quickly and 
soundly.


2.  Railroads:  
There are two railroads.  The railroad from San Jose to the Pacific 
ports of Caldera and Puntarenas (102 km) and the railroad from Limon to 
Guapiles and Rio Frio to serve the Atlantic coast banana plantations 
(160 km).  A section from Siquirres to San Jose has been eliminated.  
The Costa Rican Government is considering closing the railroads due to 
the losses it is experiencing and because better and cheaper 
transportation is already being provided by truck on a new highway 
connecting San Jose and the Port of Limon.

3.  Airports:  
There are two international airports, the Juan Santamaria Airport near 
San Jose, and the Tomas Guardia Airport in Liberia, about 270 Km north 
of San Jose (the Liberia airport is expected to open in July 1995).  The 
Juan Santamaria Airport is seriously inadequate for current needs and is 
in the process of a three-stage renovation to include a new terminal 
(6,000 square meters). As well, numerous studies have examined the need 
for a new international airport for San Jose by the year 2010.  The 
present administration is also in favor of such a project and hopes to 
be able to apply the concession law for its construction.  If a new 
airport is constructed the two or three potential sites identified for 
its location will require major highway construction.

There are small airports in San Jose, Limon, and Puntarenas, capable of 
receiving small jets, and there are landing strips in other coastal 
resorts and inland cities and towns, some of which are regularly 
serviced by SANSA, a local airline and by several airplane and 
helicopter taxi services.  In total, Costa Rica has approximately 31 
small rural airports.  Eighteen (18) of them have been targeted by 
Aviacion Civil (Civil Aviation) for upgrades. 

Costa Rica has two international airlines.  LACSA, the oldest, flies to 
Miami, Orlando, Dallas, Los Angeles, New York, Cartagena and Lima.   
AERO COSTA RICA flies to Miami, Orlando and Atlanta.  Both airlines have 
recently received permission to fly to Tampa.  American Airlines, United 
Airlines and Continental fly regularly to San Jose.  There are also 
cargo services provided by several American companies (e.g. Challenge 
Cargo, Fine Air and Capital).  TACA, MEXICANA, IBERIA, KLM, SAM and COPA 
also have regular scheduled flights to San Jose.  

4.  Seaports and ocean transportation:   

On the Pacific coast lies the port of Puntarenas, the largest coastal 
city and oldest port in the country.  Its pier, the Pacific Railroad 
terminus, was closed three years ago, reportedly in order to undergo 
renovation to permit it to receive cruise-ships.  The renovation is 
nearly complete.  

Caldera, ten kilometers from Puntarenas, is the newest port in the 
country (1982), with enough space for 3 large vessels for container and 
roll-on/roll-off cargo facilities as well as general cargo facilities.  
It is a busy port handling approximately 30-40 ships per month.  Grain 
and other ships are often known to wait in Caldera's bay for days before 
unloading.   Caldera has also become important as a cruise-ship landing 
point.  In the dry season (November - April) it can handle as many as 
180 cruise ships.  The Port of Caldera has a sedimentation problem which 
requires periodic dredging.

Punta Morales, a small port also on the Pacific, specializes mainly in 
bulk loading and unloading of sugar.  

On the Caribbean coast, the ports of Limon and Moin handle  container 
and roll-on/roll-off cargo as well as processing up to 80 percent of all 
the import and export cargo for the country. Cargo from Limon is also 
destined for Nicaragua.  

The port at Moin, the country's very important banana export port, also 
handles crude oil imports.  Limon, Moin and Caldera ports are in 
desperate need of expansion.  Limon and Moin, much like Caldera, handle 
as many as 150 cruise ships during the country's dry season.

Two smaller ports, Quepos and Golfito on the Pacific Coast, are used 
mainly as fishing and tourist facilities, but can handle small 
international cargo.   Ten major shipping lines (some 20 companies 
altogether) provide regular transport services to and from Costa Rica.  

Though efficient by comparison with some neighboring ports, Costa Rica's 
ports are also considered to be the most expensive in the region not 
only for the delays experienced at both coasts due to massive arrival of 
cruise ships but because of grossly outdated and broken port cargo 
machinery and chronic labor problems. 

5.  Energy and telecommunications:  

The state-owned Instituto Costarricense de Electricidad ("ICE"), has a 
monopoly on most electric and telecommunications services in Costa Rica.  
ICE generates sufficient electricity with modern hydro-electric plants 
for its own needs and for export to other countries of Central America 
and to Panama.  Total installed capacity is approximately 1200 MW, 93 
percent of which is hydro. 

However, Costa Rica has diversified its  energy sources.  In March 1994, 
the Miravalles I (55-MW) geothermal electric power plant became a 
reality.  Sources indicate that Costa Rica has a capacity for some 
25,000 kw of electricity of which some 10,000 kw could be geothermal 
power sourced from numerous and still active volcanoes. 

Costa Rica will soon (scheduled to begin January 1996) produce 20 mw of 
wind-generated energy thanks to the country's co-generation law #7200.

Costa Rican telecommunications provide direct dialing telephone services 
world-wide, as well as telex, telegram, facsimile  and data transmission 
services. ICE currently provides cellular telephone service, and fifteen 
other companies have received permits to provide two-way mobile phone 
services.  

Millicom, a U.S. company which pioneered cellular telephone 
communications in Costa Rica, was forced recently (May 11,1995) to cease 
operations because of a Supreme Court decision which held that its 1989 
concession was in conflict with the constitutional monopoly granted to 
the state telecommunications/electricity entity (ICE).  Millicon is 
currently (July 1995) attempting to negotiate terms that would permit 
resumption of service.
  

CHAPTER III.

                     POLITICAL ENVIRONMENT

A.  Nature of Bilateral Relationship with the United States

The bilateral relationship between the United States and Costa Rica has 
traditionally been and continues to be excellent.  Although there have 
been and remain some bilateral irritants, these have been relatively 
minor in an otherwise excellent relationship.



B.  Issues Affecting Business Climate

Expropriation cases (involving mostly undeveloped land), long the main 
negative factor affecting our bilateral business climate, appear on 
their way to resolution.  Five of the seven most prominent cases have 
been partially resolved and a sixth is about to be submitted to 
international arbitration by the current government.  However, a related 
problem has arisen with invasions of U.S. citizen-owned property by 
sometimes violent squatters that the Costa Rican police and judicial 
system have failed to deter.

The case of the U.S. cellular telephone company, Millicom (discussed 
earlier), and the barriers to investment constituted by maintenance of 
state monopolies, are also issues which affect U.S./Costa Rican trade 
relations.

Finally, the possible loss of Generalized System of Preferences (GSP) 
benefits because of alleged violations of international labor standards 
could have serious consequences for the Costa Rican export industry, 
particularly textiles.  A 1993 petition filed by the AFL-CIO and 
accepted by the United States Trade Representative, although later 
withdrawn, caused considerable bilateral friction.  A local labor 
confederation asked the 
AFL-CIO to file the petition again this year but no action was taken.


C.  Synopsis of Political System

Costa Rica is a democratic republic governed according to the 
Constitution of 1949.  This charter established a system of checks and 
balances among the executive, legislative and judicial branches.  The 
1949 Constitution abolished the Costa Rican army and created a powerful 
independent body, the Supreme Electoral Tribunal (TSE), to oversee the 
impartiality and fairness of elections.  A 1969 constitutional amendment 
limits the president to a single four-year term in office, although 
amendments allowing re-election or the extension of the presidential 
term to five years are currently under consideration by the Legislative 
Assembly.

The 57-member unicameral Legislative Assembly is elected concurrently 
with the President.  Candidates for the legislature run on party slates 
in each province and not as individuals.  The number of popular votes 
each party receives per province determines its quota of legislators in 
that jurisdiction. Deputies serve four-year terms and cannot be re-
elected for successive periods.  The current legislative assembly, for 
the term 1994-1998, took office on May 1, 1994.

In the February 6, 1994 election, Jose Maria Figueres, the candidate of 
the National Liberation Party (Partido Liberacion Nacional or PLN), was 
elected to a four-year term in office, defeating his nearest rival 
Miguel Angel Rodriguez of the Social Christian Unity Party (Partido 
Unidad Social Cristiano or PUSC) by a margin of two percentage points.  
President Figueres' PLN party holds 28 seats in the Legislative 
Assembly.  The PUSC won 25 seats.  Three smaller parties won four seats.  
The next elections for President and the Legislative Assembly will be in 
February 1998.

The two major parties are centrist with the PLN inclined to the  
moderate Social Democratic left and the PUSC tilted to the Christian 
Democratic right.  However, the policy and ideological differences are 
often blurred, and the Costa Rican emphasis on consensus tends to push 
governments to the center.  At present, the small minority parties hold 
an important balance in the Assembly, with neither major party enjoying 
a majority .

The Supreme Court has 22 magistrates who sit in four chambers, including 
the Constitutional review chamber.  


CHAPTER IV.  

                  MARKETING U.S. PRODUCTS AND SERVICES

A.  DISTRIBUTION AND SALES CHANNELS

The Commercial Code of Costa Rica in its Chapter related to
representatives of foreign companies (Agents, Distributors, etc.)
textually states the following: 
  
  All foreign companies may freely do business in Costa Rica through 
distributors, concessionaires, by proxy or agents and through 
representatives of foreign companies, excepting agencies and branches of 
foreign companies, whose products are manufactured in our country (Costa 
Rica) and, as such, may exercise directly and freely the distribution 
and representation of their lines of products, as well as those of 
Central American origin, having been duly verified.  While the 
representative may be either a Costa Rican citizen or a resident alien, 
he/she must have resided in Costa Rica for at least ten continuous years 
and must have done business in Costa Rica for three years.  

U.S. firms would be well advised to consider establishing a resident 
sales office.  Although a U.S. firm may export directly to Costa Rican 
companies, we strongly recommend the use of a qualified representative 
in order to participate in Costa Rica's government procurement system as 
well as to succeed profitably in this market.  Because Costa Rica is a 
small country, most U.S. companies will find that identifying one 
distributor or agent is sufficient to cover all of Costa Rica.


B.   USE OF AGENTS/DISTRIBUTORS: FINDING A PARTNER

Industrial Sectors

The U.S. Department of Commerce located in the U.S. Embassy in San Jose 
can offer U.S. companies the Agent/Distributor Service (the ADS is 
ordered through state District Offices), a customized search which 
locates appropriate Costa Rican representatives for U.S. products or 
services.  The Gold Key Service (GKS) is another Commerce program 
available by contacting the Commercial Service in San Jose.  This 
service, for a fee, consists of a customized appointment schedule that 
allows U.S. companies to meet pre-screened and prearranged reliable 
local firms.  The GKS includes an interpreter as well as a briefing and 
debriefing.    

Before finalizing a contract, U.S. companies are strongly advised to 
obtain and review a financial profile of the Costa Rican company by 
ordering a World Traders Data Report (WTDR) from a local U.S. Department 
District Office.  This confidential report, similar to a Dun and 
Bradstreet report, will provide the U.S. company with a commercial 
assessment of, and financial profile on, the specific Costa Rican 
company being considered as a trading partner.   A recent change in 
Costa Rica's Commerical Code cancelled the requirement or need for a 
commerical license thus making a WTDR or other information from the 
Commercial Service more important when evaluating a future Costa Rican 
business partner.

According to the Costa Rican Commercial Code, when a company
breaks an agreement with an agent/distributor that company must
compensate the agent or distributor according to the sales or
commissions earned by the Costa Rican company.  We also recommend
that both parties sign an agreement to include a precise
description of the conditions which the agent must respond to in
order to avoid any possible unfair claim by the U.S. company.
Note:  a one-time sale is not proof of permanent representation
relationship.  

Another recent change in the Commercial Code allows a U.S. company 
wanting to participate in a tender the opportunity to do so directly and 
without a local Costa Rican representative.  The only requirement is 
that the official representing the U.S. company must have a "power of 
attorney" which must be certified by a Costa Rican Consulate in the U.S.  
The Commercial Service strongly recommends caution when participating in 
the very tedious tender process and advises the use of a qualified Costa 
Rican agent or distributor, or local lawyer to represent you in such 
tenders.

Costa Rican firms wanting to do business with U.S. companies may request 
"exclusivity."  However, the Commercial Office in San Jose, conscious of 
recent changes in the Commercial Code and the dynamics of this small and 
competitive market, strongly recommends establishing, through a formal, 
legal contract, a NON-EXCLUSIVE representative-type relationship giving 
the U.S. company the right to sell to other representatives/importers in 
the country if the U.S. entity so desires.  
    
For the latest changes in Costa Rica's commercial mercantile code we 
strongly recommend that U.S. companies contract with a local Costa Rican 
lawyer (list can be obtained through the Commercial Service office) 
and/or visit the Chamber of Representatives of Foreign Companies (Camara 
de Representantes de Casas Extranjeras - CRECEX - see Appendix E) in San 
Jose. 


Agricultural Sector

Imports of consumer foods are made by private firms.  There are several 
wholesalers dedicated to the food import business with distribution of 
products to supermarkets as well as medium and small-sized stores.  Some 
imports of consumer-oriented foods are made directly by supermarket 
chains.

Distribution channels do not vary significantly among the different 
products.  But, some products (e.g. fresh fruits) require more attention 
due to the fact that they are more sensitive to environmental conditions 
and require refrigerated warehouses.

A list of the most important Costa Rican importers of consumer oriented 
foods can be found in the following USDA/FAS reports:  CS5007/CS4006 or 
in the Office of Agricultural Affairs contact lists.

The U.S. has been one of the most important commercial agricultural 
partners of Costa Rica due to its geographical proximity, high quality, 
and wide selection of competitively-priced products.

U.S. products are competing with Mexican (Mexico-Costa Rica FTA entered 
into effect in January 1995) and Chilean products such as canned fruits 
and vegetables, snacks, wheat-based products and some fruits.

Grain imports are made by a limited number of players.  Until the end of 
1994, all wheat was imported by the National Production Council (CNP).  
Since then, two private sector mills have been allowed to import wheat, 
while CNP gradually gets out of the wheat market.  Two groups of private 
sector importers make almost all imports of yellow corn and all imports 
of soybeans (both are imported in the same ship, roughly on a monthly 
basis).  CNP still makes small corn imports.  Rice is now imported by a 
group of millers associated under the name Granos Basicos de 
Centroamerica.  Neither CNP nor the Rice Office are importing rice any 
longer.  This change occurred at the end of 1994 as a result of the 
implementation of the GATT Uruguay Round.  Starting in December 1994, no 
import permits (other than phytosanitary) are required for imports of 
grains, poultry, meat, dairy products or any other agricultural product 
per Costa Rica's Uruguay Round implementing legislation.


C.  DIRECT MARKETING

Direct marketing is a relatively new concept in Costa Rica.  Since the 
country does not enjoy a postal/mailing system with defined street names 
and numbers it is difficult to obtain client lists or reliable 
addresses.

There is no law that regulates direct marketing.  In the absence of a 
specific law, direct marketing as a method of selling, is presently 
regulated by the general law that applies to publicity and publicity 
agencies.


D.  JOINT VENTURES/LICENSING

Licensing is not widespread in Costa Rica.  Generally, a foreign
company will export to Costa Rica or set up a manufacturing plant
in the country.  Foreigners may legally own Costa Rican
companies, or equity therein, and may invest in all areas not
expressly reserved for state or parastatal entities.  Foreign
corporations may be organized legally in several ways: as
branches (except for banks), joint ventures, wholly-owned
subsidiaries or locally incorporated companies.  Any bona fide
investment is encouraged in Costa Rica.


E.  STEPS TO ESTABLISHING AN OFFICE

The most important provisions affecting business law are contained in 
the Costa Rican Mercantile and Civil Codes.  

The first step in establishing a business in Costa Rica is to obtain the 
assistance of a Notary Public, the only authorized professional by law 
to register a company.  

Companies must be recorded in the Costa Rican Mercantile Registry in 
order to be a legal, authorized entity.  At registration all information 
related to the new company and the persons who will administer the 
company must be submitted, including the full name, nationality, 
occupation, civil status, domicile, form of partnership being organized, 
purpose of the company, amount of capital and the manner in which this 
capital is to be paid, and time limits in which is to be paid, domicile 
of the company, and any other agreements made by the founders.  

An extract of the registration is then published in "La Gaceta" 
(official legal journal).  Payment on initial equity (usually nominal), 
must be expressed in local currency and deposited with a local bank of 
the Costa Rican National System, until registration is completed.  
Initial equity payment is generally USD 100 to USD 1,000.  

Depending on the business the company may have to acquire a municipal 
patent or permit.  A foreign enterprise that has, or intends to open 
branches in Costa Rica must appoint and retain a legal representative 
with full ("generalisimo") powers concerning the business or the branch.  

Similar to U.S. law, foreigners must become Costa Rican residents in 
order to work in this country. 

Individuals interested in establishing a business in Costa Rica are 
encouraged to consult Costa Rica's Integrated System for Investment 
Services called "SISI."  SISI assists investors in identifying the 
public and private institutions which assist the business community.  
Contact the Ministry of Foreign Commerce or CINDE (see appendix E) for 
more information on SISI.   


F.  SELLING FACTORS/TECHNIQUES

Costa Rican buyers may select products on the basis of quality,
price, specifications and convenience.  U.S. exporters to Costa
Rica must be willing to make smaller sales than they are
accustomed to making in larger markets since the entire Costa Rican 
population is only 3.3 million people.  

Sales catalogs and brochures should be translated into Spanish.  
Products must be price competitive.  Terms of payment in Costa Rica 
should be transacted through an irrevocable letter of credit for 
purchases above four thousand dollars.  Payment of small purchases is 
usually direct.

Business in Costa Rica, as in other Latin American countries, is 
conducted and based on the establishment of personal relationships.  The 
Costa Rican business community places great importance on personal 
contacts with foreign suppliers.  New U.S. suppliers/exporters should 
initially be prepared to travel to Costa Rica at least quarterly and 
then follow-up by regular contact by fax and telephone.  A patient sales 
approach is preferred to a hard sell approach.  Again, U.S. firms can 
maximize their export sales possibilities and longevity in this market 
by contracting a Costa Rican representative, agent or distributor.


G.  ADVERTISING AND TRADE PROMOTION: LISTING OF MAJOR NEWSPAPERS
AND BUSINESS JOURNALS

Costa Rican newspapers are the best way to advertise products or
services.  Publicity agencies make good use of major newspapers
as well as magazines produced by such entities as the AMCHAM or the 
Chamber of Commerce of Costa Rica.

Major Costa Rican newspapers (in order of circulation) include:

La Nacion
Apartado 10138
1000 San Jose, Costa Rica
Tel: (506)247-4747
Fax: (506)240-6485

La Republica
Apartado 20130
1000 San Jose, Costa Rica
Tel: (506)223-0266
Fax: (506)255-3950

La Prensa Libre
Apartado 10121
1000 San Jose, Costa Rica
Tel: (506)223-6666
Fax: (506)223-4671

The Tico Times (nation's most popular English-language newspaper)
Apartado 4632
1000 San Jose, Costa Rica
Tel: (506)222-0040
Fax: (506)233-6378

Partial list of specialized, industry-specific and other commercial 
publications:

Actualidad Economica (Chamber of Commerce of Costa Rica)
Apartado 10096
1000 San Jose, Costa Rica
Tel: (506)253-2941
Fax: (506)224-1528

Business Costa Rica
(Costa Rican-American Chamber of Commerce)
Aerocasillas
AMCHAM Costa Rica
SJO 1576
P.O.Box. 025216
Miami, FL 33102-5216
Tel: (506)220-2200
Fax: (506)220-1000

Alimentaria (Chamber of Food Industry of Costa Rica)
Apartado 7097
1000 San Jose, Costa Rica
Tel: (506)234-0966
Fax: (506)225-0901

Oportunidades Comerciales (Chamber of Foreign Firms
Representatives - CRECEX)
Apartado 3738
1000 San Jose, Costa Rica
Tel: (506)224-6944
Fax: (506)234-2557

Camara Costarricense de la Construccion (Chamber of Construction)
Apartado 5260
1000 San Jose, Costa Rica
Tel: (506) 221-9814
Fax: (506) 221-7952

La Industria (Chamber of Industry of Costa Rica)
Apartado 10003
1000 San Jose, Costa Rica
Tel: (506)223-2411
Fax: (506)222-1007

Panorama Internacional
Apartado 1163
1000 San Jose, Costa Rica
Tel: (506)234-7444
Fax: (506)224-1050

U.S. firms with a representative in Costa Rica could maximize their 
promotional efforts by advertising in any of these newspapers or 
magazines. 

H. TRADE PROMOTION:

The U.S. Department of Commerce in San Jose can assist U.S. firms 
looking for new markets through the following trade/commercial events 
which can be provided for a fee and with a pre-established budget: 
commercial missions, matchmaker events, receptions, seminars, 
conferences, video and catalog shows.  

In addition, Costa Rica's one trade fair center, FERCORI, has at least 
one international trade fair (third week of February) of limited 
importance for U.S. exporters. For further information contact:

FERIAS INTERNACIONALES, S.A. (FERCORI)
Apartado 1843
1000 San Jose, Costa Rica
Contact: Lic. Flor Carreras - President
Tel: (506)233-6990
Fax: (506)233-5796


I.  PRICING PRODUCTS

Products imported into Costa Rica are priced based on: 

  -    the CIF value plus importation taxes, 
  -  customs agent fees, 
  -  in-country transportation costs, and 
  -  other product related costs.  

Product prices are not regulated by the Costa Rican Government.  

The Costa Rican Government has, however, established a "Canasta Basica", 
(the Basic Basket) --  consumer products considered essential for 
purchase: foods, janitorial products, school uniforms (including shoes) 
and school supplies, construction products, agricultural chemicals and 
tools and medicines, the prices of which it monitors closely to prevent 
"unjustified" price increases.

U.S. exporters can either: quote their products based on their
list price or allow the local importer or representative to
calculate their own profit to include the commission in the FOB or CIF 
price.  

With the second alternative the U.S. exporter may have better control 
over the prices offered to the end-user, and will make sure their 
products are competitive in the local market. 


J.  SALES SERVICE/CUSTOMER SUPPORT

Product support/service (after-sale support), provided through the local 
representative as well as the U.S. exporter, is extremely important for 
both Costa Rican government institutions (involving government 
produrement programs/bids) as well as the local business community.  

Availability of maintenance contracts, identification of repair shops, 
as well as any other technical support is expected from the buyers.  
Service literature and contracts should be provided in Spanish.  The 
U.S.'s proximity to Costa Rica provides U.S. exporters with the ability 
to provide service easily and readily.  

K.  SELLING TO THE GOVERNMENT

The Costa Rican Government procurement system is based on Costa Rican 
Finance Administration Law.  

Government entities purchase or acquire their goods and services through 
public and private tenders which are published in the official newspaper 
(La Gaceta) and major newspapers.  

Foreign companies may appoint a representative through a power of 
attorney for a specific tender.  This representative can be a Costa 
Rican citizen/company, alien or resident of the country.  A general 
power of attorney can also be given to a person or company to represent 
the foreign company in various tenders for a certain period of time.  

The local representative should be able to translate tender documents 
from Spanish into English, and assist in preparing bid offers in 
Spanish.  Some large projects (mainly construction projects) may require 
the presence of the U.S. company officials in Costa Rica in order to 
better assess the requirements and prepare a good offer to the Costa 
Rican government entity.

We cannot stress enough the need for a strong joint partner or 
representative when competing for government contracts.  The Gold Key 
Service (a Commercial Service program) is an excellent means of 
identifying a potential partner or representative.   


L.   PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT

Protecting your product from IPR infringement in Costa Rica is sometimes 
significantly more problematic than in the U.S.  Patent protection, 
especially for pharmaceutical and agrochemical products, is seriously 
inadequate.  In order to assure maximum IPR protection for any valuable 
product, it is advisable to obtain the services of an experienced 
intellectual property attorney familiar with local IPR laws and with the 
procedures of the National Registry.  A brief summary of local IPR laws 
and international agreements to which Costa Rica is a signatory may be 
found in Part VII (Investment Climate Statement), in this CCG. 
In recent years, businesses (software distributors, music composers, 
cable TV entities, authorized video distributors, etc.) dependent upon a 
good IPR regime have tried to encourage the government of Costa Rica to 
step up its enforcement efforts against serious violations of local 
intellectual property laws. 


M.  NEED FOR A LOCAL LAWYER

Obtaining competent, local, legal representation is critical when  one 
is planning to begin a business, buy or sell real estate, apply for 
resident status or make any type of significant investment in Costa 
Rica.  

Not only is Costa Rica's legal system (based on Roman law) considerably 
different than that of the United States (with its roots in English 
common law), but language differences present opportunities for serious 
miscommunications and misunderstandings, sometimes with grave 
consequences.  It is strongly advisable to retain the services of an 
attorney who is completely bilingual to avoid potential communication 
failures.  
Frequent communication and effective oversight of local legal 
representatives is also important to ensure that transactions are 
completed in a relatively timely manner.

While the U.S. government cannot recommend specific attorneys, a list of 
commercial lawyers can be obtained from the Commercial Service.


CHAPTER V.    

            LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
                BEST PROSPECT LISTS FOR U.S. EXPORTERS

A.  BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES

Based on analysis of public and private development trends nationwide, 
Best Prospects in Non-Agricultural Goods and Services, in rank order, 
for FY96, include (this list is subject to change):
1.  Paper and paperboard 
2.  Telecommunications equipment
3.  Hotel and restaurant equipment
4.  Construction equipment
5.  Medical equipment
6.  Water resources equipment and services
7.  Sporting goods and recreational equipment
8.  Port/shipbuilding equipment 

A narrative description and statistical analysis of these sectors 
follows. 

B.  BEST PROSPECTS FOR AGRICULTURAL GOODS 

The best prospects for U.S. agricultural exports to Costa Rica are:
1.  Corn 
2.  Rice
3.  Soybeans
4.  Wheat 
5.  Fresh fruit
6.  Processed fruit and vegetables
7.  Snack foods

The most favorable prospects are found in various bulk grains including 
corn, soybeans, wheat and rice as well as many areas of high value 
products.  Costa Rica's growing poultry and dairy industries are 
expected to continue to boost U.S. corn and soybean shipments, while 
this country's growing population, privatization and rising income are 
expected to increase wheat and rice consumption and U.S. export 
prospects.  Higher disposable incomes and a trend toward consuming more 
convenience foods are expected to result in excellent prospects for U.S. 
exports of fresh fruit (mainly grapes, apples, peaches, and pears), 
processed fruits and vegetables (especially canned fruits), and snack 
foods (including chips, cookies and candies).

A narrative description and statistical analysis of these sectors 
follows. 


A.  BEST PROSPECTS FOR NON-AGRICULTURAL GOODS AND SERVICES - 

CONTINUED

  Rank of sector:  1
  Name of sector:  Paper and Paperboard
  ITA Industry Code:  PAP

NARRATIVE:

Costa Rica is one of the largest paper and paperboard importing 
countries in Central America and the Caribbean. Meanwhile, the U.S. is 
the largest supplier of this product to Costa Rica. The annual U.S. 
market share average of Costa Rica's paper and paperboard imports for 
the period 1990-1994 was 68 percent. Both Costa Rica's market size and 
U.S. exports are expected to grow 5 percent per year for the period 
1995-1996. This growth percent has been constant during the last five 
years. Although small, it is significant due to the high value of the 
market size and total imports (US$ 206.8 million and US$164.9 million in 
1994 respectively).

Local production of paper and paperboard is limited to toilet paper, 
cleansing tissues, napkins and diapers. There is only one large local 
company producing this line of products, Scott Paper de Costa Rica. 
Scott Paper has been in this market for over 15 years.

Major third country competitors are Canada with a market share of Costa 
Rican imports of 11.7 percent in 1993 and 10.7 percent in 1994; Brazil 
with 9.8 percent in 1993 and 8.1 percent in 1994 and El Salvador with 
3.0 percent in 1993 and 4.4 percent in 1994.       
Most promising sub-sectors for paper and paperboard are uncoated 
bleached and unbleached kraft paper and paperboard; metallized type 
paper; drawing paper and light-weight coated paper. Paper products which 
are ecologically sensitive seem to have a measurable, strong acceptance. 


DATA TABLE: (US$ millions)
                            1994    1995   1996

A. Total market size        187.8  197.0  206.8
B. Total local production    31.2   32.8   34.4
C. Total exports              8.3    8.9    9.4
D. Total imports            164.9  173.1  181.8
E. Imports from the U.S.    112.4  173.1  124.0

The above statistics are unofficial estimates.



  Rank of sector:  2
  Name of sector:  Telecommunications Equipment
  ITA Industry Code:  TEL

NARRATIVE:

The telecommunication market in Costa Rica has experienced an important 
growth in this decade. The market size (equal to total imports) grew 
from US$30.2 million in 1992 to US$65.7 million in 1993. In 1994 it 
descended to US$51.0, still high for a market of 3.2 million people. 
Telecommunications in Costa Rica is a government monopoly handled by the 
Costa Rican Institute of Electricity (ICE). The cellular telephone 
service, until recently handled by a private joint venture (COMCEL of 
Costa Rica and Millicom of U.S.), reverted back to ICE which is planning 
the installation of a 50,000 subscriber network (leasing with option to 
buy) for the following five years. ICE's future expansion plans include 
the acquisition of 50,000 digital telephone lines for the end of this 
year and the leasing, with option to buy, of 300,000 digital telephone 
lines more, together with internal plant equipment and transmission 
lines, for 1996.  

While European technology (Siemens from Germany and Alcatel from France) 
has dominated the telecommunication market in Costa Rica from the 60's 
to the 90's (mainly with the analog system), U.S. technology, in digital 
and cellular systems, is erupting in the local market at the close of 
this decade. This is demonstrated by the growth in imports from the 
U.S.: US$10.4 in 1992; US$13.8 in 1993 and US$23.6 in 1994. Market share 
for U.S. exports to Costa Rica in 1994 was 46.3 percent of total 
imports. Expected growth in U.S. exports for 95/96 is 20 percent per 
year.  

There is no telecommunication equipment production in Costa Rica. Major 
third country competitors are France, with a market share of Costa 
Rica's imports of 17.9 percent in 1994; Japan with 13.3 percent; Canada 
with 5.6 percent and Germany with 4.0 percent.
Most promising sub-sectors in the local telecommunication market are 
digital and cellular telephone systems, data transmission equipment and 
fiber optic networks. 

DATA TABLE: (US$ millions)
                              1994      1995      1996

A. Total market size          51.0      61.2      73.4
B. Total local production       -         -         - 
C. Total exports                -         -         - 
D. Total imports              51.0      61.2      73.4
E. Imports from the U.S.      23.6      28.3      34.0

The above statistics are unofficial estimates.



  Rank of sector:  3
  Name of sector:  Hotel and Restaurant Equipment
  ITA Industry Code:  HTL  

NARRATIVE:

This sector has been spurred by the continued, albiet slowed growth in 
tourism in this country.  During the last two years, a considerable 
number of new restaurants opened their doors.  As well, the Costa Rican 
Government has develop programs and incentives to increase the number of 
hotel rooms in the country.  This is the case of the Gulf of Papagayo 
Project promoted by the Costa Rican Tourism Institute (Instituto 
Costarricense de Turismo - ICT), which consists of developing hotels in 
the 15 beaches on the northern Pacific coast.  Expected market growth 
for hotel and restaurant equipment, for the next three years (1995-
1997), will average approximately 13-18 percent per year.
 
According to estimates for 1995, U.S. maintains 66.4 percent share of 
the total Costa Rican imports in this sector.  U.S. share of total 
demand is 73.3 of this same category.

Product categories in the domestic production include commercial 
cook/ranges, non-electric commercial cooking/warming apparatus, 
dispensing furniture and equipment, and refrigeration equipment.

Major U.S. competitors are Spain, El Salvador, South Korea, Brazil, 
Japan, Colombia and Guatemala.  Pricing, financing, delivery time, 
availability of spare parts, after-sales service, and strong promotion 
of products continue to be the prime consideration in purchasing 
decisions for hotel and restaurant equipment.

DATA TABLE: (US$ millions)
                             1994      1995      1996

A. Total market size        30.4      34.3      40.4
B. Total local production    6.5       6.8       7.1
C. Total exports             9.5      10.9      12.0
D. Total imports            33.4      38.4      45.3
E. Imports from the U.S.    19.9      25.5      33.1

The above statistics are unofficial estimates.


  Rank of sector:  4
  Name of sector:  Construction Equipment
  ITA Industry Code:  CON  

NARRATIVE:

The construction market in Costa Rica has maintained a constant growth 
during the last five years, with an outstanding peak in 1993 where the 
market experienced a total demand of US$39.5 million. Total market size 
for 1992 was US$26.6 million and for 1994 it was US$28.2 million. This 
growth in the construction industry is related to Costa Rica's growth in 
tourism experienced in recent years and the increase in the 
import/export activity of the country. The increase in these sectors is 
demanding more roads. 

In addition, the recently approved law for public works under concession 
(BOT scheme) will probably increase activity in the construction of 
roads and bridges in Costa Rica. 

Due to its reputation and good quality, U.S. construction equipment has 
traditionally enjoyed the preference of Costa Rican construction 
companies. Caterpillar tractors, bulldozers, scrapers, shovel loaders, 
concrete mixing trucks and dumping trucks in use in Costa Rica are 
mainly U.S. brands. This is confirmed by the market share in Costa Rica 
for U.S. exports of construction equipment which was 62.3 percent in 
1992, 66.6 percent in 1993 and 76.4 percent in 1994. Local construction 
companies will undoubtedly continue to buy U.S. equipment in order to 
ensure a good performance in their construction projects. Expected 
growth in U.S. exports in 1995/96 is 10 percent per year. 

There is no local production of construction equipment in Costa Rica. 
Major third country competitors are Japan with a market share in Costa 
Rica's import of 14.4 percent in 1993 and 5.4 percent in 1994; Brazil 
with a market share of 6.7 percent in 1993 and 4.5 percent in 1994; and 
United Kingdom with 4.1 percent in 1993 and 2.9 percent in 1994. 
Construction equipment in high demand in Costa Rica are bulldozers, 
backhoes, shovel loaders, asphalt mixers, and dumping trucks.   

DATA TABLE: (US$ millions)
                            1994      1995      1996

A. Total market size        28.2      31.0      34.1
B. Total local production     -         -         - 
C. Total exports              -         -         - 
D. Total imports            28.2      31.0      34.1
E. Imports from the U.S.    21.6      23.7      26.1

The above statistics are unofficial estimates.


  Rank of sector:  5
  Name of sector:     Medical Equipment
  ITA Industry Code:  MED  

NARRATIVE:

The demand for medical equipment in Costa Rica has remained relatively 
stable over the past three years.  Expected market growth for the next 
three years (1995-1997) will average approximately 10-15 percent per 
year.

Costa Rica has a socialized health care system called the Caja 
Costarricense de Seguro Social (CCSS).  This system includes: 29 
hospitals: 9 general hospitals, 7 regional (1 in each geographic 
region/province) and 13 peripheral hospitals (distributed in 3 
categories according to their size); 16 of these hospitals are located 
in the Central Region of the country.  Additionally, the CCSS is 
responsible for 300 clinics. The country's hospitals have 6,920 beds 
which belong to the CCSS, plus approximately 200 beds in four private 
clinics/hospitals.  The public is very sensitive to the government's 
programs in public health and encourages the replacement of obsolete 
medical equipment in the principal clinics and hospitals.  The public 
sector, represented mainly by the CCSS, buys approximately 80 percent of 
the medical equipment.

The CCSS has anounced two major projects to be completed by the end of 
1998: a USD 31.9 million project that consists of the construction of a 
new hospital in the city of Alajuela.  Equipment needs are estimated at 
USD 8-9 million.  And a USD 30.0 million project that consists of the 
enlargement of the present hospital in the city of Liberia.  Equipment 
needs are estimated at USD 7.5 million.  During the first months of 
1997, the CCSS plans to invite local and foreign companies to 
participate in a biding process for all needed equipment for these 
hospitals.

There is no local production of medical equipment in Costa Rica. Major 
U.S. competitors in this sector are Germany and Japan.  High quality, 
reliability, durability, favorable prices, good maintenance service and 
timely delivery are the main factors for increasing U.S. sales of these 
products.

DATA TABLE: (US$ millions)
                             1994      1995      1996

A. Total market size         18.6      21.0      23.9
B. Total local production     -         -         - 
C. Total exports              -         -         - 
D. Total imports             18.6      21.0      32.9
E. Imports from the U.S.     11.8      13.3      15.2 

The above statistics are unofficial estimates.

  Rank of sector:  6  
  Name of sector:  Water Resources Equipment and Services
  ITA Industry Code:  WRE  

NARRATIVE:

The demand for water resources equipment in Costa Rica has remained 
relatively stable over the past three years.  Expected market growth for 
the next three years (1995-1997) will average approximately 21-26 
percent per year.

According to estimates for 1995, U.S. maintains 53.8 percent share of 
the total Costa Rican imports in this sector.  U.S. share of total 
demand is 52.6 of this same category.

The Costa Rican Institute of Water and Sewage Systems (AyA) has 
announced three major projects to be completed by the end of 1997, or 
beginning of 1998, for an approximate total amount of USD 146.5 million.  
The projects are the need for water infrastructure for major urban 
centers and rehabilitation of sewage, water, as well for the acquisition 
of tanks, water systems, and water meters for the major cities of the 
country.  During the first months of 1996, the AyA plans to invite local 
and foreign companies to participate in a biding process for all needed 
equipment and products for these projects.

The production and exportation of water related equipment is limited to 
the manufacturing of plastic (PVC) tubing and its parts.  Major U.S. 
competitors in this sector are Guatemala, Israel, Brazil, and 
Switzerland.  High quality, reliability, durability, favorable prices, 
and timely delivery are the main factors for increasing U.S. sales of 
these products. 

DATA TABLE: (US$ millions)
                                1994      1995      1996

A. Total market size            7.8       9.5      11.8
B. Total local production      12.4      12.5      12.7
C. Total exports               12.0      12.3      12.5
D. Total imports                7.4       9.3      11.6
E. Imports from the U.S.        4.7       5.0       5.4

The above statistics are unofficial estimates.



  Rank of sector:  7
  Name of sector:  Sporting Goods and Recreational Equip.
  ITA Industry Code:  SPT  

NARRATIVE:

The demand for sporting goods and recreational equipment in Costa Rica 
has been increasing in the last two years.  There has been a 
considerable increase of body building gyms, fitness centers, aerobic 
schools, swimming schools, and other recreational activity centers.  All 
kinds of sports wearing apparel, and  fitness equipment for homes, has 
also increased in Costa Rica.  Expected market growth for sporting goods 
and recreational equipment, for the next three years (1995-1997), will 
average approximately 25-30 percent per year.
 
According to estimates for 1995, U.S. maintains 32.5 percent share of 
the total Costa Rican imports in this sector.  U.S. share of total 
demand is also 32.5 percent of this same category.

The only production and exportation existing in this country in this 
sector is limited to a drawback manufacturing operation of baseballs 
done by a major U.S. baseball manufacturer.  Figures reflecting that 
export are not shown because this export is not affecting the local 
market in anyway.

Major U.S. competitors in this sector are Taiwan and Korea.  Very 
favorable prices, novelties, high quality, reliability, durability, and 
timely delivery are the main factors for increasing U.S. sales of these 
products.

DATA TABLE: (US$ millions)
                            1994      1995      1996

A. Total market size          6.2       7.8      10.1
B. Total local production     -         -         - 
C. Total exports              -         -         - 
D. Total imports              6.2       7.8      10.1
E. Imports from the U.S.      1.9       2.5       3.4

The above statistics are unofficial estimates.



  Rankhowever of sector:   8  
  Name of sector:  Port/Shipbuilding Equipment
  ITA Industry Code:  PRT  

NARRATIVE:

The tremendous increase being experienced in the import/export cargo 
handling activity of the three main seaports of Costa Rica, Limon and 
Moin in the Atlantic Coast and Caldera in the Pacific Coast, has created 
the urgent need for port cargo handling equipment in the country. Port 
authorities in Costa Rica have announced their intention to urgently 
acquire cargo handling equipment for their ports, such as portable 
container cranes, mobile tired cranes, straddler carriers, container 
heads for flatbeds, forklifts, and tugboats. Dredging equipment is also 
included in the list. This equipment is expected to be purchased during 
1995/1996. There is very little demand, if any, for shipbuilding 
equipment in Costa Rica.

While Japanese, German and other European companies have been constantly 
knocking on Costa Rican Port Authorities (JAPDEVA in the Atlantic and 
INCOP in the Pacific) doors offering their equipment, U.S. companies 
have virtually forgotten this market. However, Port Authorities have 
expressed their preference for U.S. equipment, due to its high quality 
and good reputation, as well as to the rapid service in acquiring spare 
parts from United States. U.S. companies need to be more aggressive in 
this market. Private ocean shipping companies and banana producers 
purchase U.S. cargo handling equipment for their operations at the ports 
in Costa Rica. Therefore, the market share of U.S. exports in Costa Rica 
was 49.8 percent in 1992, 55.7 percent in 1993 and 67.2 percent in 1994. 

Costa Rica does not produce port equipment. Major third country 
competitor are Japan with a market share of 19.3 percent in Costa Rica's 
import for 1994. Other countries are Germany, Italy and United Kingdom 
with very low market share in Costa Rica's imports.

DATA TABLE: (US$ millions)
                            1994      1995      1996

A. Total market size         5.2      20.0      30.0
B. Total local production     -         -         - 
C. Total exports              -         -         - 
D. Total imports             5.2      20.0      30.0
E. Imports from the U.S.     3.5      10.0      15.0

The above statistics are unofficial estimates.



B.  BEST PROSPECTS FOR AGRICULTURAL GOODS 

A.  Rank:  1
B.  Name of Sector:  Corn
C.  ITA or PS&D Code:  440000

                            1994     1995     1996

D.  Total Market Size       420,000  435,000  450,000

E.  Total Local Production   34,000   33,000   30,000

F.  Total Exports             4,000        0        0

G.  Total Imports           390,000  400,000  420,000  

H.  Total Imports from U.S. 365,000  390,000  400,000

Comments:  Data in MT are marketing years (October-September) for 
1992/1993, 1993/1994 and 1994/1995.

The above statistics are unofficial estimates.


NARRATIVE:

The value of U.S. yellow corn exports to Costa Rica increased  from 
$22.5 million in 1990 to $45.3 million in 1994.  The 1994 value was 14.6 
percent higher than in 1993, continuing the upward trend for corn 
imports.  Export volume of U.S. corn is expected to reach 400,000 MT 
this year, a new record.

The major expansion in production of chicken meat and milk along with 
smaller gains in output of swine meat and aquaculture have fueled 
growing corn imports for feed.  Meanwhile, domestic corn production 
keeps falling due to low profitability (virtually no yellow corn is now 
produced).  U.S. corn exports are expected to continue to grow (although 
at a slower rate) given future chicken and milk production increases.  
Corn imports from countries other than the U.S. are usually white corn 
imports from Mexico for flour and tortilla production.  Two private 
sector groups import almost all of the corn with the National Production 
Council (GOCR) purchasing about 5-percent.  The U.S. is very competitive 
shipping out of the Gulf and holds nearly 100-percent of the market.  
Canadian feed wheat or European wheat or barley is expected to provide 
some future competition as it has done in other Central American 
nations.


A.  Rank:  2
B.  Name of Sector:  Soybeans
C.  ITA or PS&D Code:  222200

                             1994     1995     1996

D.  Total Market Size        140,256  160,000  200,000

E.  Total Local Production        0       0        0

F.  Total Exports                 0       0        0

G.  Total Imports            140,256  160,000  200,000

H.  Total Imports from U.S.  140,256  160,000  200,000

Comments:  Data are in MT for 1994 from U.S. Customs and are calendar 
year.  Forecasts are provided for CY95 and CY96.

The above statistics are unofficial estimates.


NARRATIVE:

U.S. exports of soybeans totaled $35.0 million in 1994, almost 80 
percent higher than in 1990.  According to U.S. Census data, U.S. export 
volume in CY1994 reached 140,256 MT, 972 MT less than in calendar year 
1993. Costa Rican data is not available yet for the whole calendar year 
1994.  The same factors influencing corn imports have contributed to 
growing U.S. soybean exports (both are imported on the same ship).  The 
U.S. holds a 100-percent share of the soybean import market (no soybeans 
are produced locally). Soybeans are imported primarily for the meal; the 
oil has been in surplus over the last few years, with exports to Central 
America providing an outlet. However, Costa Rica's soybean oil 
consumption is growing partly as a result of an advertising campaign 
funded by the American Soybean Association.   Local palm oil provides 
competition, since cheaper shortening dominates fats and oils use.   
There is only one oilseed crusher in Costa Rica, INOLASA, located near 
the Pacific port of Caldera (where all bulk grains arrive).  INOLASA 
plans to expand meal and oil production during 1995 and 1996.



A.  Rank:  3
B.  Name of Sector:  Wheat
C.  ITA or PS&D Code:  410000

                              1994     1995     1996

D.  Total Market Size         143,000  148,000  150,000

E.  Total Local Production       0        0        0

F.  Total Exports                0        0        0

G.  Total Imports             151,000  150,000  155,000

H.  Total Imports from U.S.   151,000  150,000  155,000

Comments:  Data in MT are marketing years (July-June) for 92/93, 93/94 
and 94/95.

The above statistics are unofficial estimates.


NARRATIVE:

U.S. wheat exports reached a record of $27.3 million in 1994.  U.S. 
export volume in 94/95 is estimated to exceed 150,000 MT.  About 75 
percent of Costa Rican wheat imports are hard red spring, with soft red 
winter and durum about equally comprising   the rest.  The U.S. holds 
100-percent of the market but increased competition from Canada and the 
EU is expected as a result of the liberalization of wheat imports.

Prior to this year the GOCR National Production Council (CNP) imported 
all the wheat but the private sector is now allowed to import as well. 
As a result of this change in policy, flour prices are increasing as 
wheat is no longer subsidized by the National Production Council.  No 
wheat is produced locally.



A.  Rank:  4
B.  Name of Sector:  Milled rice
C.  ITA or PS&D Code:  422110

                             1994     1995     1996

D.  Total Market Size        147,000  151,000  155,000

E.  Total Local Production   125,000  110,000  110,000

F.  Total Exports               0        0        0

G.  Total Imports             24,000   51,000   48,000

H.  Total Imports from U.S.   24,000   35,000   48,000

Comments:  Market size and local production (MT) are marketing years 
(August-July) for 1992/1993, 1993/1994 and 1994/1995. Import data (MT) 
are calendar years 1993, 1994 and estimated 1995.

The above statistics are unofficial estimates.


NARRATIVE:

U.S. exports reached a record $13.6 million in 1994.  Rice import volume 
is expected to reach a similar level during 1995.  In contrast to 1994, 
when 16,000 MT were imported from Ecuador, all rice is expected to come 
from the U.S.  U.S. export value could be lower in 1995 because all 
imported rice is expected to be rough rather than milled rice.  Costa 
Rica traditionally has purchased more rough rice (to keep domestic mills 
operating) than milled rice.  Costa Rica's rice production has declined 
over the last few years due to the lower planted area and low prices; 
significant new irrigation area will go into effect for the 95/96 year 
and may reduce import needs.  Costa Rica eliminated its rice import 
permit requirement in December 1994.  The private sector has made all 
the imports after that through a group of mills under the name Granos 
Basicos de Centroamerica.



A.  Rank:  5
B.  Name of Sector:  Fresh fruit
C.  ITA or PS&D Code:

                             1994    1995    1996
                                U.S. $ MILLION

D.  Total Market Size        n/a     n/a     n/a

E.  Total Local Production   n/a     n/a     n/a

F.  Total Exports            626     650     635

G.  Total Imports              9.0     9.0     9.2  

H.  Total Imports from U.S.    6.3     7.0     7.2

Comments:  Includes exports of bananas, pineapples and melons (the three 
largest categories of fruits exported).  Based on GOCR statistics for 
1994 (1995 exports are estimated based January-April data).

The above statistics are unofficial estimates.


NARRATIVE

Based on U.S. Census data, U.S. exports of fresh fruit reached a value 
of $6.3. million in calendar 1994.  Costa Rican grape imports totaled 
$2.7 million and apple and pear imports totaled $3.2 million.  Costa 
Rican fruit imports from the U.S. in 1994 decreased 4.10 percent.  

The United States and Chile are exporting almost the same fruit products 
to Costa Rica, but during different seasons. From January to June, Costa 
Rican companies import from Chile nectarines, grapes, peaches, plums, 
apricots, Asian pears, kiwi and apples.  During the rest of the year, 
imports come mostly from the United States. However imports from the 
U.S. now are being made year round for apples.  Sales of fresh fruits 
are estimated as follows: 35 percent street sales, 20 percent at public 
markets and 45 percent in supermarkets.


A.  Rank:  6
B.  Name of Sector:  Processed Fruit/Vegetables
C.  ITA or PS&D Code:

                             1994    1995    1996
                                U.S. $ MILLION

D.  Total Market Size        n/a     n/a     n/a

E.  Total Local Production   n/a     n/a     n/a

F.  Total Exports            31.7    32.8    33.0

G.  Total Imports             8.5     8.5     8.7

H.  Total Imports from U.S.   3.6     3.5     3.7

Comments:  Based on GOCR statistics for 1994.  Includes exports of 
processed vegetables & legumes, sausages & preparations and processed 
fruits.

The above statistics are unofficial estimates.


NARRATIVE:

Based on U.S. Census data, U.S. exports of processed fruit and 
vegetables in 1994 reached a record $3.6 million.  From available Costa 
Rican data we estimate total imports to be 8.5 million.  These products, 
especially mixed fruits, mixed vegetables, yellow & sweet corn, generate 
strong import demand.  Guatemala is also exporting significant 
quantities of canned fruit to Costa Rica.


A.  Rank:  7
B.  Name of Sector:  Snacks Foods (excl nuts)
C.  ITA or PS&D Code:
                             1994    1995    1996
                                U.S. $ MILLION

D.  Total Market Size        n/a     n/a     n/a  

E.  Total Local Production   n/a     n/a     n/a  

F.  Total Exports             20.2   23.4    24.0
    
G.  Total Imports             13.6   12.5    13.0

H.  Total Imports from U.S.    4.2    4.0     4.5

Comments:  Based on GOCR statistics for 1994 (exports are estimated 
based January-April data). Includes exports of bakery, candies with 
cocoa, chocolate & cocoa products.

The above statistics are unofficial estimates.


NARRATIVE:

Based on U.S. Census data, U.S. exports of snack foods reached a record 
$4.2 million in 1994.  In 1993 U.S. snack food exports tripled to over 
$3.3 million, as a result of lower tariffs in the imports of many brands 
(cookies, candies, potato chips and other snacks -in base or 
containers).  1994 was also a good year for snack foods, but a change is 
taking place during 1995 due to the economic situation and the 8% tax 
increase on all imports.

Costa Rica produces chocolates and other candies and cookies locally 
which provides some competition for the U.S. in the market.  These 
products are also exported to Central America (with a small amount 
shipped to the U.S.).


  CHAPTER VI.  

  TRADE REGULATIONS AND STANDARDS


A.  TRADE BARRIERS, TARIFFS AND IMPORT TAXES

With the exception of the country's monopolies in some critical services 
(e.g. telecommunications, electricity, insurance, refinery, banking 
services, etc.), and deficiencies in the intellectual property regime, 
there are no trade barriers that affect the importation of most goods to 
Costa Rica.

As part of its 1990 accession to the GATT during the Uruguay Round, and 
the trend towards trade liberalization occuring throughout Central 
America (generally, but not exclusively, through the Central American 
Common Market, of which Costa Rica is a member), Costa Rica is slowly, 
but positively, moving towards a more unified and lower tariff and tax 
system.  

Overall, the GOCR has agreed to a ceiling binding of 55 percent on 
tariffs, but selected agricultural products (of which there is 
substantial local interest) have been "safeguarded" and have much higher 
tariffs.  Examples of this protection afforded to domestic industries 
are dairy products with a 111 percent tariff and poultry products with a 
274 percent tariff.  Despite this, the Government of Costa Rica has 
agreed to allow a quantity equal to 3 percent of national consumption at 
the 55 percent level, which could provide opportunities for new-to-
market U.S. agricultural products in these areas.

High tariffs and tax barriers which have restricted the importation of a 
number of agricultural products from non-CACM countries, especially 
fruits, wines, and processed products, as well as for many other 
products, were reduced to a maximum of 20 percent during the first 
months of 1993, in conformity with other members of CACM.   

However, the Costa Rican Government announced, (through Executive 
Decree/March 29, 1995) a new eight percent across-the-board increase in 
import taxes.  As a result the tariff on raw materials increased from 5 
to 13 percent and on finished products from 20 to 28 percent.  The 
Government of Costa Rica stated the increase should be considered a 
temporary measure until a new tax package (known as "Projecto de Ajuste 
Tributario") can be  approved by the Legislative Assembly, hopefully by 
August or September.  

Customs duties range from 1 to 28 percent ad valorem.  An exception to 
this range is the 45 percent ad valorem levied on apparel, which will be 
reduced to 35 percent on July 1, 1995, and reduced again to 25 percent 
on January 1, 1996.

Comparatively low tariffs and import taxes have been an important factor 
behind the increased growth of U.S. exports of consumer-oriented food, 
which grew from $10.5 million in 1989 to a record $26.3 million in 1994.  
Tariff reductions resulting from the GATT Uruguay Round implementation 
also helped, but most food tariffs are between 14 and 19 percent.

Selective consumer taxes for a majority of imported products have been 
reduced or eliminated.  However, products such as wine and beer face a 
higher consumption tax: 30-40 percent for beer and 35 percent for wine.  
All imported products face a fixed tax of 1 percent (called the 
Emergency Tax), and a domestic sales tax of 10 percent (scheduled to go 
up to 15%).  Some domestic products are exempt from the domestic sales 
tax. 

Tariffs on most bulk grains are low, at 1 percent.  The
tariff on milled rice is 55 percent and is 27 percent for rough
rice.  Costa Rica privatized its wheat and rice import sectorin 1995, 
although retail prices are still controlled by the government.

U.S. exports are more significantly affected by taxes and Central Bank 
surcharges which include: 

CONSUMER TAX:
There exists a selective consumer tax ranging from 5 percent to 75 
percent.  This tax applies to about half of all products imported.  Some 
of the products that pay the highest tax percent include arms and 
munitions (75 percent), costume jewelry (50 percent), fireworks (50 
percent), and vehicles (all types, 47 percent).

SALES TAX:
A sales tax of 10 percent (proposed to increase to 15 percent) is levied 
on all products and services not destined for offical use by the GOCR.  
Certain essential items are exempt. 

SURCHARGE TAX:
There is a one percent surcharge imposed on all imports.  Items
exempt of this surcharge are medicines and raw materials for
medicines for human use (not for veterinarian use).

TARIFFS ON USED ITEMS:
A 1994 decision of the Costa Rican Constitutional Court annulled the 
depreciation system which benefited all used products with a 20 percent 
depreciation if the product was one year old, and up to 70 percent 
depreciation if the product was five or more years old.  The new measure 
will affect all U.S. exporters of used products, especially those 
exporting used vehicles and parts (with the exemption of automobiles), 
and used machinery of any type, in which the U.S. has a major role and 
share in the Costa Rican market. Used products are now subject to import 
taxes as if they were brand new. Used apparel is not included in this 
list as this item has its own tariff schedule classification. 

CUSTOMS VALUATION
As in the United States, import duties vary depending on the type
of product.  Import taxes are calculated as follows:

Ad valorem tax:            Levied on CIF value;

Selective consumer tax:    Levied on CIF value and
                           the Ad valorem tax;

Sales tax:                 Levied on the combined CIF value,
                           Ad valorem tax, and
                           the selective consumer taxes;

Surcharge (Law 6966):      Levied on CIF value only.  Known as
                           the Emergency Tax, or the
                           Transportation Tax.  It is always 1%.

B.  IMPORT LICENSES

Import licenses are not required for most products.  However,
pharmaceuticals, drugs, cosmetics, chemical products (solvents and 
precursor chemicals), require an import permit (to include registration) 
from the Costa Rican Ministry of Health.  Food products that are new-to-
market require a registration, and phytosanitary and animal health 
certification are required by the Agriculture Ministry's Sanidad Vegetal 
division.  These permits must be obtained by the Costa Rican importer.  
Import permits from the Ministry of Health are valid for five years.  
Arms and munitions require a licence from the Costa Rican Ministry of 
Security. 

The Central Bank no longer licenses imports.  Imports and exports are 
registered for statistical purposes.



C.  EXPORT CONTROLS

Costa Rican exports must be registered with the Central Bank,
mainly for statistical purposes.  Further, the Government
maintains export controls on some products.  Exports of
livestock, wood and ornamental plants require a license from the
Ministry of Agriculture.  Metal scrap is subject to an export
license from the Ministry of Industry, Energy and Mines.  Coffee
exports are regulated by the National Costa Rican Coffee
Institute (INCAFE).  Sugar exports are regulated by the sugar
cane organization known as "Liga Agricola de la Ca?a de Azucar"
(LAICA).  Gold cannot be exported, and must be sold to the
Central Bank at the market rate.


D.  IMPORT/EXPORT DOCUMENTATION

Costa Rica requires no special documentation for entry of goods
other than commercial invoices, bills of lading and air-way bills
for shipments irrespective of cargo value.  Mail shipments
require postal documentation.  Bulk agricultural products require
phytosanitary certificates.  Import permits from the Ministry of
Health are provided after presentation of certificate of analysis
(quantitative-quality certificates) for chemicals (toxic substances, 
insecticides, pesticides and agricultural inputs). Cosmetics, dairy food 
products, and free-sale certificates are also required, all of them 
authenticated by a Costa Rican consulate in the United States.

Surgical and dental instruments and machines can be sold only to 
licensed importers and health professionals

Since infractions of documentation laws are taken seriously in
Costa Rica, any error or infraction carries a heavy fine.


E.   TEMPORARY ENTRY

Costa Rica is known as a "maquila" or offshore country offering the 
temporary entry of textile and electronic parts (for example) and the 
export of finished textile and electronic products.   Labor intensive 
activities in the food processing, textile and electronics assembly 
operations drawback arrangements with the U.S.  Costa Rica's skilled 
workers and stable political conditions make the temporary admission 
system particulary attractive for U.S. manufacturing companies.  Many 
"maquilas" are located in the nation's very popular and successful Free 
Trade Zones (FTZ). Other kinds of temporary entries, such as samples for 
exhibitions or demonstrations, need a customs bond covering total import 
duties of the sample.  This bond will be reimbursed to the importer 
after the good(s) has/have been reexported. 


F.  LABELING, MARKING REQUIREMENTS  

There are no general requirements in Costa Rica for marking the
origin of goods or for the labeling of general merchandise.
However, special labeling requirements apply to shipments of food
products, pharmaceuticals, fertilizers, pesticides, hormones,
veterinary preparations, vaccines, poisonous substances, and
mouthwashes.

Costa Rican food labeling law requires that all imported food
products contain labeling in Spanish with the following specifications: 
product name, list of ingredients in quantitative order (nutritional, 
name and address of importer, expiration or best if used by dates and 
weight).  Although expiration dates are required on all food products, 
Costa Rican importers are of mixed opinion when discussing their 
utility.  The Ministry of Economy, Department of Procedures and Labeling 
is tring to make all the paper work less burdensome for importers.

Phytosanitary (USDA/APHIS) or zoosanitary (USDA/FSIS) certificates are 
required for imports of bulk grain, fresh horticultural products or 
fresh/frozen meats.  Most processed food products (canned, boxed, pre-
cooked) do not require phytosanitary or zoosanitary certicates, but 
exporters should check with their importers on latest requirements.

Pharmaceutical samples for promotional purposes may be
dispensed only to doctors, dentists, and veterinarians; these
samples may not be sold and may only be distributed by accredited
doctors.

Packages of fertilizers must bear the authorization number of the
Directorate General for Agriculture and Livestock and its "seal
of guarantee", plus certain other information.

Geographic names may be used on labels only when the products
come from the place of origin indicated.

U.S. exporters are also encouraged to consult with their
import distributors/customers and a local lawyer in Costa Rica for 
additional information.

Packages coming into Costa Rica may be marked with either stencil
or brush.  Weights need not be shown on packages, but each must
bear a mark and be numbered.  There are no other general requirements 
regarding how shipments must be marked.  Common shipping practices 
should be followed.  In general, all identifying marks, including the 
consignee's mark with port marks, should be inscribed plainly on the 
packages to facilitate arrival of the shipment.


G.  PROHIBITED IMPORTS  

The Government of Costa Rica prohibites the importation of used
tires without wheels.  This is a sanitary regulation aimed at
protecting the country from the yellow fever mosquito.  Besides this 
prohibition, there are no other restrictions on the importation of 
products.


H.  STANDARDS
 
Costa Rica uses U.S. and European commercial and product standards.  
However a "system of standards" has not been well implemented in Costa 
Rica due to a lack of adequate laboratory equipment and funds which 
results in poor quality of local products.  

The U.S. Department of Commerce's National Institute of Standards and 
Technology (NIST) is working with Costa Rica on ISO qualification.  A 
NIST seminar was held in Costa Rica in July 1994.  In some isolated 
cases Costa Rican and U.S. companies in Costa Rica are using the ISO 
designation in their promotional campaigns.  According to the Costa 
Rican Technical Standards Institute (Instituto de Normas Tecnicas de 
Costa Rica-INTECO), to date only four local companies have obtained ISO 
9000 certification: Baxter, Conducen, Trimport and Hules Tecnicos. Two 
other companies: GTE Sylvania and BTicino are expected to obtain ISO 
9000 certification in the near future.


CHAPTER VII.  

                            INVESTMENT CLIMATE 

A.   OPENNESS TO FOREIGN INVESTMENT:   

In general, Costa Rica has a relatively open international trade and 
investment regime.  However, state monopolies in public utilities, 
insurance, bank demand deposits, the production and distribution of 
electricity, hydrocarbon and radioactive minerals extraction, refining 
and the wholesale distribution of petroleum and operation of ports and 
airports limit investment opportunities in these sectors.  

In sectors not reserved to the state, there is widespread recognition in 
both public and private sectors that increased foreign investment is 
essential for increased exports and employment.  Since mid-1982, the 
government has placed considerable emphasis on improving the investment 
climate, including the creation of the Ministry of Foreign Trade 
(COMEX), which is coordinating government efforts in the trade and 
investment areas.  The Center for Export and Investment Promotion 
(CENPRO), has assisted prospective investors during the past 18 years 
with information-gathering and in completing formalities required to set 
up an investment.  CENPRO also created a "one-stop" export window (La 
Ventanilla Unica) in 1994 to assist exporters cut through often 
confusing export paperwork.  The Costa Rican Coalition for Development 
Initiatives (CINDE), a private non-profit association, operates a very 
active investment promotion program through several regional offices in 
the U.S., Europe and the Far East.

Key to its attractiveness as a potential site for investment is the fact 
that Costa Rica is a beneficiary country of the U.S. Caribbean Basin 
Initiative (CBI) and Generalized System of Preferences (GSP).  These 
programs grant Costa Rica duty-free access for some 4,000 products and 
have played a significant role in helping Costa Rica diversify its 
exports and increase two-way trade.  

In February 1984, Costa Rica's Legislative Assembly passed the Financial 
Equilibrium Act to improve public finances, which includes a whole 
chapter on export incentives.  Companies choosing to enter into an 
"export contract" with the Government of Costa Rica receive benefits 
that include 100 percent deductions on income tax, up to 50 percent tax 
credits on the purchase of an export company's stock, and almost total 
exemption on duties for imported raw materials and capital goods that 
are not produced in the country and are necessary for the operation of 
the export companies.   The same act includes provisions to encourage 
draw-back activities.

Industries with the following characteristics are considered to have 
good development potential in Costa Rica:  those which are labor 
intensive, have low capital costs, require medium skill complexity, and 
produce CBI-eligible goods which have high U.S. duties or quotas that 
impede imports from outside the Caribbean area.  

Such industries include: electronic components, electronics assembly, 
electronic consumer goods, mechanical engineering assembly, small 
electrical appliances, up-scale apparel, toys, sporting goods, selected 
leather goods (most leather products do not currently benefit from CBI), 
health care supplies, and natural resource-based products, including 
food processing and agro-industry.

With the Government of Costa Rica's emphasis on exports, enterprises 
meant to supply or service local consumers tend to be overlooked.  
However, recent foreign investments include such varied activities as 
fast food (Burger King, Taco Bell, McDonalds, Pizza Hut, etc.), video 
rentals, hotels (Marriott, Hampton Inn, Camino Real), computer products 
and services.   The Government of Costa Rica has also actively sought 
investment in hotels and other tourist facilities.  

Laws governing private investment are identical for nationals and 
foreigners.  Discrimination between these two groups is constitutionally 
prohibited.  Costa Rican laws are passed by the Legislative Assembly and 
ratified by the President.  Some of the laws dealing specifically with 
investment are the Civil and Commerce Codes, the Export Promotion Law, 
the Financial Stabilization Act of 1984, and the Income Tax Law of 
October 1988, as well as banking and other laws dealing with specific 
topics such as property registration, taxation, mining and industrial 
contracts.  

According to Costa Rican law, the Constitution of Costa Rica takes 
foremost precedence, followed by international treaties, Acts of the 
Legislature, and regulations dictated by the different government 
entities.  Custom, precedent, foreign laws and learned opinions 
(jurisprudence), serve only as tools of interpretation and do not bind 
judges.

Foreign companies and persons may legally own equity in Costa Rican 
companies, including real estate, manufacturing plants and equipment, 
hotels, restaurants, and all kinds of commercial establishments.   
However, several activities are reserved to the state: public utilities, 
insurance, telecommunications, mail, demand deposits (checking and 
savings accounts), the operation of ports and airports, and the 
extraction of hydrocarbons (through government concession) and 
radioactive minerals extraction and refining.  In May 1994, the 
Hydrocarbons Act was enacted, allowing the state to award concessions to 
private parties, including foreign companies, for the exploitation of 
petroleum (were it to be found).  Similarly, an energy co-generation law 
(Law #7200) allows private entities to produce up to 30 percent of the 
country's electricity.  

Participation in some service industries by foreign individuals can be 
so rigorously controlled that in practical terms it may be impossible: 
for example, medical practitioners, lawyers, certified public 
accountants, engineers, architects, teachers  and other professionals 
must be members of one of the guilds or "colegios" which stipulate 
residency, exams and apprenticeship requirements that can only be met by 
long-time residents of Costa Rica, whether citizens or foreigners.  For 
this reason, U.S. firms seeking to do business in these sectors should 
secure a local Costa Rican partner.  

Foreign companies may operate legally in several ways, such as a branch, 
a joint venture or wholly-owned subsidiary, or by incorporating as a 
local, foreign-owned company.  Individual foreign persons or 
partnerships can also legally own and operate individual enterprises of 
limited liability, a partnership company, or a stock or charter company.  
Trusts and cooperatives can be established.  Regardless of how they 
operate, all enterprises, owners and company officers must be registered 
in the National Registry, thus becoming "Costa Rican" enterprises 
regardless of the nationality of the owners or officers.  Acquisitions 
and company takeovers are governed by regulations similar to those in 
the United States.  Foreigners can be officers, directors, partners or 
trustees of companies, negotiate commercial documents, and execute any 
kind of contract.

In general, the laws controlling investment by foreigners are fairly 
transparent.  However, investment in real estate requires particular 
care due to the possibility of squatter invasions. Organized, violent 
squatters have often targetted undeveloped farmland owned by absentee 
investors.  In recent years, however, squatters have also repeatedly 
invaded developed farmland, e.g. macadamia, pineapple and citrus farms 
Costa Rican land tenure laws favor squatters, and police protection of 
landowners in rural areas is poor to non-existent.  Investment in 
beachfront property can also be problematic since all beachfronts are 
public property for a distance of 200 meters from the high tide mark and 
are strictly regulated in accordance with Maritime Zone laws.  Potential 
investors should be aware that within the first 50 meters of this public 
beach zone, nothing can be constructed and the public cannot be denied 
the right of access.  The next 150 meters are restricted, but 
concessions for a certain period of time may be obtained from the 
appropriate municipality.  Potential investors in land in Costa Rica 
should also be advised that the right of crossing through traditional 
paths is an ancient custom protected by laws derived from Roman law 
(servidumbres).   

In general, investing in land in Costa Rica requires constant vigilance 
and expert legal counsel given the risk of squatter invasions, 
expropriations and the strict regulation of beachfront property. 
Furthermore, great attention must be given to the accuracy of land 
registration.  This process is complicated by the fact that only about 
40 percent of the land in Costa Rica has been titled.

Investment in general is not subject to special restrictions.  For 
instance, no investment screening mechanisms exist and there are no 
limitations or conditions imposed on transfers of technology.  Any 
available technology is acceptable, and can be imported.  
Geographically-determined preferential areas of investment, set up as 
industrial investment and duty-free zones, are designed to facilitate 
access to export incentives.  The Stock Exchange conducts securities 
transactions with reference to the norms existing in the Civil and 
Mercantile Codes and the Central Bank and other banking Acts.  The 
Auditor of the Banking System, an officer of the Central Bank, is the 
supervisor of commercial banks and all securities and stock 
transactions.  

Foreign investors with some experience in Costa Rica have identified 
several problems which face prospective investors.  Most of the 
difficulties are due to a cumbersome bureaucracy which slows approval of 
documents for all types of transactions, but especially those concerned 
with Customs and the banking system.  For example, in the past, delays 
in receiving dollars for imports could be quite lengthy depending on the 
ready availability of dollars to the banking system.  These delays 
sometimes added considerably to an investor's operating expenses.  The 
GOCR has made serious efforts to reduce these inefficiencies, including 
the establishment of a "one-stop" office to assist investors in 
obtaining necessary approvals from government agencies.  In addition, 
there are no longer controls on foreign exchange transactions which are 
conducted by commercial banks, and the exchange rate is market-
determined with the Central Bank influencing the exchange rate through 
open market operations.

Customs procedures are costly and complex.  Most large enterprises find 
they must have customs specialists on the payroll, in addition to buying 
the services of customs brokers.  Customs brokers must be bonded Costa 
Rican companies and enjoy a monopoly on the handling of imports.  
Although things are improving there are frequent complaints from 
importers and exporters about burdensome customs procedures, poor 
administration, theft, graft and inadequate facilities.

The share of foreign workers in an enterprise is limited by law, but the 
Ministry of Labor generally grants permission for foreigners to work.  
Permits for foreign participation in management have always been 
granted.  No requirements exist for foreign owners to work in their own 
companies.  There are no restrictions on the repatriation of profits and 
capital.  


B. TRANSFER POLICIES:
  
There are no limitations on transferring funds associated with 
investments abroad, in any available currency, and at a legal market-
clearing rate.  There is no queueing for foreign exchange, but the 
availability of dollars is dependent on market conditions.   No 
restrictions are imposed on reinvestments or in the repatriation of 
earnings, royalties, or capital except when these rights are covered in 
agreements with the Government of Costa Rica.  Royalties are taxed in 
accordance with Title IV of the Income Tax Law, No. 7092, extensively 
reformed in October 1988, and the amounts vary from 10 to 25 percent.

C.  EXPROPRIATION AND COMPENSATION:  

The government's expropriation policy is a cautionary signal to U.S. 
investment in Costa Rica.  In the past, the government expropriated 
large amounts of land for national parks, biologic and indigenous 
reserves, and to distribute to squatters without compensating the 
property owners.  While Article 45 of the Constitution of Costa Rica 
stipulates that no property can be expropriated, from a Costa Rican or 
foreigner, without previous, prompt and fair payment, and for a 
demonstrable reason of public interest, some U.S. claimants continue to 
seek resolution of expropriated property cases which began 15 to 20 
years ago.  The U.S. Government has been able to expedite compensation 
in some individual cases.

In addition to the past failure to provide prompt compensation, the 
adequacy of eventual compensation has at times been diminished because 
Costa Rican law allows claims against the government to be paid in 
depreciated local currency.  Actual compensation can therefore be 
significantly reduced over time.  

The Figueres administration has undertaken considerable efforts to 
resolve several pending expropriation cases and some longstanding, high-
profile cases appear on the way to resolution.  Five of seven prominent 
cases have been at least partially resolved and a sixth is about to be 
submitted to international arbitration.  

A recent development offers some promise that future expropriation cases 
will be dealt with by the government of Costa Rica in a more prompt, 
efficient manner.  On June 8, 1995, the Legislative Assembly passed a 
new law on expropriations, Law No. 7495, which replaced several laws 
that had allowed the expropriation of private property by any state 
institution.  The new law should help ensure that expropriations take 
place only after full and advance payment is made, regardless of the 
nationality of the property holder.  Included among the laws'  
provisions are:  a) a requirement that the property be returned to the 
original owners if it is not used for the intended public purpose within 
ten years of the expropriation (in the claimant already had been paid, 
he would have the option of purchasing the property at its current 
value); b) a maximum six-month period for the expropriating public 
institution to complete all requirements needed for formally registering 
the property; c) a one-month period during which the tax office must 
conduct an appraisal of the property to be expropriated; d) a 
requirement that the tax office itemize crops, buildings, rental income, 
commercial rights, mineral exploitation rights, and other goods and 
rights, separately and in addition to the value of the land itself; and 
e) provisions providing both local and international arbitration.



D.  DISPUTE SETTLEMENT:  

In general, the Civil and Commercial codes provide for arbitration of 
commercial disputes.  The law does not generally recognize any 
arbitration other than that provided by local courts.  (However, the new 
expropriation law, referenced above, explicitly references international 
and local arbitration).

In 1990 the Government of Costa Rica created a special Expropriation 
Commission to negotiate with the U.S. Government and U.S. claimants 
and/or their representatives to resolve pending expropriation disputes.  
Claimants in theory have had recourse to international arbitration 
through the International Center for the Settlement of Investment 
Disputes -- a World Bank forum for settling investment disputes between 
governments and foreign investors -- since early 1993, when the 
Government of Costa Rica acceded to the Washington Convention (no 
disputes have been submitted to date, although one case appears likely 
to go to ICSID soon).  Claimants also have had access to local 
arbitration since 1991.  Cases in which American citizens sought 
resolution of their property dispute through Costa Rica's domestic 
arbitration procedures, using Costa Rican lawyers as arbitrators, have 
been somewhat disappointing.  In one of the cases, the arbitral award 
was clearly inadequate as the arbitral panel used non-market interest 
and exchange rates to compute the award -- in apparent violation of a 
ruling by the Constitutional Chamber of the Costa Rican Supreme Court 
(Sala Cuarta). 

While it is theoretically possible to obtain redress through the 
judicial system, in practice litigating against the Government of Costa 
Rica can take so long and be so costly that the system is unworkable.

There are a number of land disputes pending resolution before Costa 
Rican courts that involve squatters on land owned by U.S. citizens 
and/or corporations.  Thus far, the Costa Rican police and the judicial 
system have failed to resolve most of these outstanding disputes. In 
general, the process to resolve squatter cases is long and costly, and 
the legal owner (particularly if foreign) is at a significant 
disadvantage in a system that can favor squatters, especially on land 
not being actively worked.   It is prudent therefore, that investments 
in land be limited to land actively farmed or occupied by the owner and 
that a thorough investigation regarding the possible presence or threat 
of squatters be made prior to purchasing the property.  

In addition to acceding to the Washington Convention and becoming a 
member of ICSID, Costa Rica has joined the U. N. Multilateral Investment 
Guarantee Agency (MIGA), which provides a forum for international 
arbitration in investment disputes, as well as investment guarantees.  
Costa Rica has not joined the United Nations Protocol for the Compulsory 
Settlement of Disputes between countries, nor the New York Convention of 
1958 on the Recognition and Enforcement of Foreign Arbitral Awards.


E.  POLITICAL VIOLENCE:  

There is no significant political violence in Costa Rica.   Internal 
problems in Nicaragua have resulted in extensive illegal immigration 
into Costa Rica (over 300,000 Nicaraguans, both legal and illegal, 
reside in Costa Rica, about 15% of the population).  To some extent 
these migrants have brought the violence of their homeland with them, 
but this is reflected in common criminality rather than in political 
violence.  There are no indigenous or external movements likely to 
produce political or social instability.  While Costa Rica is a highly 
politicized country, that politicization is entirely directed towards 
the practice of democratic politics.  A common practice of groups 
seeking a hearing for their cause is to block roads or highways and 
these demonstrations occasionally escalate into violent confrontations 
with the police.  Violent confrontations have also occurred during 
conflicts over private property seized by squatters.


F.  PERFORMANCE REQUIREMENTS/INVESTMENT INCENTIVES and FREE TRADE ZONES:  

There are no performance requirements that foreign investors must meet.  
Investment incentives are included in three recent laws governing 
investment in Costa Rica: the Export Processing Zones Law of 1981, the 
Financial Stabilization Act of 1984, and the Income Tax Law No. 7092, 
last revised in October of 1988.   The Export Processing Law established 
publicly operated free-trade zone industrial parks in Santa Rosa 
(Puntarenas) on the Pacific Coast, and Moin (Limon) on the Caribbean 
seaboard.  Coto Sur, near the Panamanian border is engaged in the export 
of African oil palm seed.  

The Cartago Industrial Park, 15 miles from San Jose, was the first 
privately-managed free trade zone to be established.  The Free Zone 
Corporation has authorized several new private projects in Alajuela 
(Saret Free Trade Zone) and Heredia (Metropolitan Free Trade Zone) 
provinces, in order to take advantage of the proximity to the Juan 
Santamaria Airport.  The Corporation has recently decided to divest 
itself of the actual ownership and running of free-zone parks, 
preferring to encourage the establishment of privately-run parks 
throughout the country.   The benefits available under the provisions of 
the free zone legislation include the following:

  - Total exemption from imported duties on raw
    materials, processed or semi-processed products,
    parts or components;

  - Total exemption from all export taxes associated
    with the export or re-export of products.   The same
    exemption is granted for the re-export of equipment
    and machinery used in the productive process;

  - Total exemption from sales and consumer taxes;

  - Total exemption from taxes levied on remittances
    abroad;

  - Total exemption from all taxes on profits for a
    period of six years from the beginning of operations,
    and 50 percent exemption for the following four years.

In addition to these tax benefits, companies operating in free trade 
zones enjoy free currency conversion (no restrictions), a benefit not 
available to companies with export contracts.  However, companies 
operating in free trade zones are not qualified to receive tax credit 
certificates.  

The Financial Stabilization Act creates the export contract and 
consolidates legislation governing drawback operations, to include: 

  - Total income tax deductions on profits from 
    non-traditional exports to third (non-Central
    American Common Market) countries;

  - Reduced port charges;

  - Simplification of procedures;

  - Bank financing at preferential rates;

  - Tax deductions;

  - Accelerated depreciation;

  - A fifty percent tax credit on the purchase of stocks
    of firms that produce entirely for export;

  - Duty-free import of inputs for production of 
    non-traditional products to be exported to third
    countries;

  - Duty-free temporary entry for inputs used in assembly 
    operations, samples and other inputs and

  - The creation of a National Investment Council,
    comprised of two ministers from the economic sector
    (which in practice are the Ministers of Finance and
    Foreign Trade), by the Director of CENPRO, and by two
    representatives of the private sector chosen by the
    President of Costa Rica.

At present, some incentives included in the Financial Stabilization Act 
(and reiterated in Articles 60 and 61 of the Income Tax Law of October 
of 1988) listed above are not being offered to new investors.  These are 
reduced port charges, preferential interest rates, and certificates of 
increased exports (CIEXES).

Until recently, the Central Bank, upon recommendation from the National 
Investment Council, would award Tax Credit Certificates (CATs) and 
Export Increment Certificates (CIEXES) -- two investment incentives 
established under the 1972 Export Promotion Law that also created 
CENPRO.  CATs and CIEXES have been determined to be countervailable 
subsidies in recent investigations by the U.S. Commerce Department; 
consequently, the government of Costa Rica is considering alternative 
incentives more consistent with international trading rules.  The 
Financial Stabilization Act of 1984 and the Income Tax Law of October 
1988 allow for complete exoneration of income taxes for 12 years, 
thereby providing alternative benefits.  A recent Supreme Court decision 
has halted the issuance of further CATs. 

Under the terms of the Central American Common Market (CACM) Treaty of 
1960, industry products produced in Costa Rica enter duty-free into the 
other four Central American countries.  There are no discriminatory 
import policies on goods from outside Central America (except for some 
non-tariff barriers to agricultural products), and most goods imported 
from outside of Central America pay duties ranging from 5 to 30 percent 
(not including the 8 percent across-the-board tariff hike which the 
government has said will be "temporary").  Holders of export contracts 
avoid paying these duties.

Special benefits are afforded those who establish residence in Costa 
Rica, such as foreign retirees and resident investors, as well as Costa 
Ricans who retire here on incomes received from abroad.  Information on 
the requirements and benefits established for such residents can be 
obtained from the Instituto Costarricense de Turismo (ICT), Apartado 
777, San Jose 1000, Costa Rica.


G.  RIGHT TO PRIVATE OWNERSHIP:

Apart from fields reserved for the state or that require Costa Rican 
citizenship or residency, all private entities and persons, domestic or 
foreign, may establish and own business enterprises and engage in all 
forms of remunerative activity.  The exceptions occur in sectors 
reserved wholly or primarily for the state (bank demand deposits, 
insurance, education, medical services, police services, etc.), where 
private sector participation is, to varying degrees, limited.  For 
instance, private banks can provide all banking services except for 
checking and savings deposits, while private insurance companies may 
only sell reinsurance services to the state insurance monopoly and 
foreign trade insurance (mainly to foreign companies that insure imports 
from Costa Rica).  

Private-sector firms also offer educational, medical and security 
services, closely supervised by the corresponding state institution.  
The limitations apply to domestic as well as to foreign private 
enterprises.  The Costa Rican Legislative Assembly appears to be 
seriously considering the possibility of allowing private banks to offer 
demand deposits (checking and savings accounts) and offering private 
banks access to the Central Bank's rediscount window, but a final 
decision regarding this issue has not yet been made.

In fields where private enterprises provide the same goods or services 
to the public that state enterprises provide, open competition has 
generally led to either the sale to the public or the closing of the 
state company (food retailing, sugar production, road building and 
repairs, aluminum processing).  In some cases (road building and 
repairs), the state has switched from providing the service directly, to 
purchasing it through open bidding.  


H.  PROTECTION OF PROPERTY RIGHTS:

The status of patent and trademark protection is similar under Costa 
Rican law to that provided by the Lanham Act, and U.S. patents can be 
registered in Costa Rica in the Patents Office of the National Registry.  
Costa Rica law stipulates 12 years patent protection for inventions, 
except in the case of medicines and agricultural inputs, for which the 
period of protection is limited to one year.  Models and trademarks are 
effectively protected by branches of the National Registry, which keep 
permanent files on foreign models and trademarks and allow foreign 
registration.  Any trademark registered abroad can be registered in 
Costa Rica, and in practice, the trademark is protected from copy even 
if not registered in Costa Rica upon showing proof of registration 
abroad.

Costa Rica is a signatory of all major international agreements and 
conventions on intellectual property, trademarks, copyrights, and patent 
protection.  Costa Rica became a member of the World Intellectual 
Property Organization (WIPO) in 1980.  In May 1995, the Legislative 
Assembly ratified Costa Rica's adherance to the Paris Convention for the 
protection of Industrial Property.  Adherence to GATT and the 
possibility of obtaining desired foreign investment has caused the 
Government of Costa Rica to contemplate extending patents on inventions, 
medicines and agricultural chemicals to 20 years, but no such 
initiatives appear likely to be approved soon.  

In May 1994, Costa Rica amended its copyright law to strengthen 
sanctions for piracy and provide explicit protection of computer 
programs.  Prior to this amendment, although computer programs could be 
registered as general copyrighted material, they were not explicitly 
protected by the Costa Rican copyright law.  Gross violations of 
intellectual property continue in Costa Rica's video cassette market, 
where, according to U.S. industry sources, nearly all tapes are 
unauthorized.

Costa Rica was a signatory to the revised Central American Convention on 
Industrial Property on November 30, 1994.  This protocol attempted to 
bring Central American laws on industrial property in conformity with 
world standards and the requirements of GATT Trade Related Aspects of 
Intellectual Property and the major international conventions.  The 
Legislative Assembly has not yet ratified this revised agreement.

Costa Rica is a signatory of the the 1886 Bern Convention for the 
protection of literary and artistic works, the Universal Copyright 
Convention (Geneva) of 1952, the 1961 Rome Convention for the protection 
of artists and performers of artistic works, and the 1971 Geneva 
Convention for the protection of phonograms against unauthorized 
reproduction.  Costa Rica has not adhered to the 1974 Brussels satellite 
transmission convention.  Copyrights can be registered with the National 
Registy, but their protection is guaranteed under international treaties 
even if they are not registered locally.  

Trade secrets are specifically protected in the Constitution and in the 
Civil, Mercantile, and Criminal Codes.  Article 24 of the Constitution 
protects the confidentiality of communications, and Article 203 of the 
Penal Code stipulates jail terms as punishment for divulging trade, 
employment, and other secrets.  The punishment is double for public 
servants.   The patents, models and trademark protection laws stipulate 
criminal as well as civil liabilities for divulging certain types of 
trade secrets.  These laws are generally enforced, but only at the 
initiative of the affected party.  However, the main deficiency in Costa 
Rica's intellectual property protection regime is its one-year patent 
protection for pharmaceuticals and agricultural chemicals.


I.  REGULATORY SYSTEM - LAWS AND PROCEDURES:   

Costa Rican laws, regulations and practices generally foster 
competition.  Tax, labor, health and safety laws generally do not block 
the efficient mobilization and allocation of investment.  However, 
bureaucratic procedures are frequently long and involved and tend to be 
discouraging to newcomers.  Nevertheless, long-time foreign resident 
companies and individuals appear to thrive despite (or perhaps because 
of) the red tape that might discourage some newcomers.  Judging by new 
construction and investment, as well as by the growth of the Costa 
Rican-American Chamber of Commerce (AMCHAM), the regulations and red 
tape are not sufficient to block healthy growth.

On the other hand, much work is necessary to eliminate crucial 
bottlenecks in public offices such as the customs service, the state-
owned banks and the postal service.  The administration of justice 
should be improved in several areas that are of particular importance to 
investors.   Bankrupcy procedures, land tenure conflict resolutions, 
torts, etc., are complicated and require highly specialized professional 
assistance.  Supplying goods and services to the Government requires 
such expertise that frequently public bidding proceedings are annulled 
because the would-be supplier or contractor is unable to understand or 
comply with all the regulations.  However, on June 8, 1995, the 
Legislative Assembly enacted Law No. 7494, regulating administrative 
contracting and procurement.  The law's purpose is to simplify and to 
increase the efficiency of the procedures for appealing government 
procurement contract awards.


J.  EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT:

The three state-owned banks supply about 80 percent of domestic credit.  
Private banks, however, are increasing their share of credit by 
employing innovative ways of borrowing funds and by operating in a more 
business-like manner, free of political considerations imposed on the 
state-owned banks.   The private sector has access to a variety of 
credit instruments.  Long-term capital is very scarce, primarily because 
of high inflation and currency devaluation rates that cannot be 
controlled by the banks.  The stock exchange is small with only about 
twenty companies listed, due primarily to the size of the economy and 
the fact that most enterprises are owned and controlled by a limited 
number of persons who wish to retain control.  Thus, the stock exchange 
is not a viable source of new investment capital.  Stock exchange 
regulations protect the public, rather than encourage and facilitate 
portfolio investment.

Credit is allocated on market terms, although the state-owned banks are 
sometimes obliged to finance high-risk or unprofitable activities deemed 
by the Government or the Legislature to be of public interest.  Foreign 
investors are able to borrow in the local market, but the small scale of 
the economy and closed nature of the society generally means foreign 
borrowers must form joint ventures with well-known local persons or meet 
stricter credit criteria.  Generally, the legal, regulatory and 
accounting systems are transparent and consistent with international 
norms.  
The major international accounting firms have local offices to service 
international, as well as local, enterprises.  


K.  BILATERAL INVESTMENT TREATIES:   

Costa Rica has bilateral investment treaties with several European 
countries, ranging from a long-standing one with Switzerland, to more 
recent ones with Great Britain, France and the Federal Republic of 
Germany.  Negotiations of a bilateral investment treaty with the United 
States were suspended in 1990, given Costa Rica's reluctance at that 
time to negotiate a bilateral IPR agreement.

New Trade Agreement between Costa Rica and Mexico:
In April 1994 Costa Rica signed the Free Market Treaty with Mexico which 
will permit Costa Rica to reduce even further the ad
valorem tax on imports from Mexico.  Beginning January 1995, over
12,000 products (mainly those products that are paying ad valorem
taxes of 10 percent or less) are exempt of this tax.  Other
products will have steadily declining taxes over the next 5
to 15 years.

L.   OPIC PROGRAMS:  

The Overseas Private Investment Corporation (OPIC) offers both financing 
and insurance coverage against expropriation, war, revolution, 
insurrection and inconvertibility for eligible U. S. investors in Costa 
Rica.  Financing is available to U.S. companies for a maximum of fifty 
percent of the initial investment in the range of USD 250,000 to USD 6 
million.  Currently OPIC insures about 3 to 5 new projects per year in 
Costa Rica, and holds a portfolio of more than 300 clients.

U.S. investors should be aware that OPIC, per statutory requirements, 
may not be able to offer insurance if the project would have a 
detrimental effect on the U.S. balance of payments or employment.  These 
statutory requirements have led OPIC to offer only limited insurance 
coverage for textiles and citrus investments.  Similarly, all 
prospective OPIC insured projects must be approved by the government of 
Costa Rica for possible balance of payments or labor problems.

In addition to its regular insurance programs, OPIC has a computerized 
Opportunity Bank which seeks to identify and match potential foreign 
investment projects with U. S. investors seeking investment 
opportunities abroad.  Further information regarding the Opportunity 
Bank, as well as OPIC programs in project financing and feasibility 
studies can be directed to OPIC, 1615 M. Street, N. W., Washington, 
D.C., 20527, telephone (202) 457-7200.  The Senior Insurance Officer can 
be reached directly at (202) 872-9306 or by facsimile at (202) 872-9306.  
The Business Development Officer can be contacted by phone at (202) 457-
7116 or by facsimile at (202) 331-4234.


M. LABOR:  

The Costa Rican labor force can be characterized as relatively well-
educated, skilled and easily trainable, largely the result of a 
historical emphasis on significant state support of education.  This 
effort has resulted in a literacy rate of about 94 percent.  The average 
worker has demonstrated a willingness to seek, and an ability to absorb, 
additional specialized training.  Technical and vocational training is 
available through the Government of Costa Rica National Training 
Institute (INA) or other private sector organizations.  INA vocational 
training centers provide training on industrial applications in textile 
machinery repair, electronic assembly and repair, general mechanics, 
gasoline and diesel engine maintenance and repair and industrial 
maintenance.  Additional training is available for fishing, 
agribusiness, office management skills and hotel and tourism services.  
However, while this training is good in a general sense, more 
specialized on-the-job training has been required in the past.  Efforts 
to improve vocational training are underway in both the public and 
private sectors.  


Professional manpower, educated in local and foreign universities, is 
ample, the largest in Central America, and among the best in Latin 
America and the Caribbean.  There are 5,500 registered engineers and 630 
registered architects, many of whom have earned advanced degrees, 
professional qualifications and valuable experience abroad.  There are 
3,900 registered medical doctors, about one for every 770 persons; and 
1,250 dentists and oral surgeons, about one for every 2,400 persons.  
Perhaps the statistic of which the country is most proud is that of 
university-trained teachers:  ANDE, the National Association of 
Educators, has a membership of 33,000 and the approximately 20,000 
retired teachers constitute the most powerful and respected lobby in the 
country.  Other well-represented professions in Costa Rica include:  
5,800 registered lawyers and notaries, and about 3,000 business and 
public administration graduates, many working in the civil service.  The 
four state universities, five provincial colleges and twelve private 
institutions of higher education produce highly qualified professionals 
at one of the highest rates in Lain America.

Open unemployment in Costa Rica, which dropped steadily from 1982 to 
1993--from 9.5 percent to 4.1 percent--rose slightly in 1994 to 4.2 
percent.  These figures reflect only persons working or actively seeking 
work, and do not include the self-employed or "discouraged" workers who 
have ceased looking for work.  Underemployment (in seasonal or casual 
work) is estimated to hover around 20 percent (although the official 
figure for 1994 was 5.9 percent).  Absenteeism is typically low, with an 
average attrition rate estimated at 15 percent.  Sick leave per person 
averages about four days annually.  Labor-management relations are 
governed principally by the 1943 Labor Code, which addresses salaries, 
working hours and conditions, separation of workers, and resolution of 
labor disputes in the various labor courts, among others.  The minimum 
wage is established periodically (at present twice a year) by the 
National Wage Council, comprised of representatives from the GOCR, 
management and labor.  The current average daily wage for the 
manufacturing sector is about USD 12 including all social benefits.

Mandatory payroll taxes paid by the employer total 25.75 percent of 
wages and cover contributions toward INA vocational training, social 
security (health, maternity, disability, old age and death benefits).  
All workers are entitled to both a two-week paid vacation and a 
Christmas bonus equal to one month salary upon completion of one year's 
service.  Christmas bonuses for workers with less than one year's 
service are prorated.  Women workers are entitled to four month's 
maternity leave.

These benefits, coupled with other outlays for severance pay, insurance 
and holiday pay, add approximately 40 percent to company base salary 
payrolls.

The Labor Code limits the number of foreign workers in a company  -- 90 
percent of the total must be Costa Rican employees.  These limits are 
allowed to vary by 10 percent under certain conditions during a five-
year period, as determined by the Ministry of Labor.  Similarly, an 
employer legally cannot pay less than 85 percent of total annual company 
salaries to Costa Ricans.  Foreigners cannot occupy jobs for which Costa 
Rican labor is available without the express permission of the Ministry 
of Labor.

Costa Rican and foreign companies (maquila and non-maquila) located both 
within and outside of Free Trade Zones have complained of difficulties 
in keeping their workforce.  Some cite monthly turnover of 3-5 percent.  
A small group of textile maquila companies have recently moved or 
expanded their operations to Nicaragua in search of a secure, permanent 
and eager workforce.  

Some in the government of Costa Rica say this attrition is natural and 
evolutionary stating that Costa Rica is now ready to handle companies 
who want a more mature and technologically sophisticated workforce.   

The latest figures available from the Labor Ministry put unionization at 
about 15 percent of the total Costa Rican workforce.  This percentage 
has stayed relatively constant for years.  According to best current 
estimates, there are some 420 unions containing about 180,000 workers.  
A large majority of union members are found in the public sector.  While 
public sector strikes remain technically illegal (the labor code forbids 
them), criminal penalties have been repealed.

Growing activity among public sector unions in 1994 came largely in 
response to government austerity plans designed to confront the 
country's fiscal crisis which include possible large-scale job layoffs 
and tax increases.  Several one-day walk-outs and marches were called 
but received little support and there was no corresponding response in 
the private sector.

Strikes hardly ever take place in the private sector, where workers 
attempting to form or join unions or to organize walkouts can easily 
lose their jobs.  Estimates are that 2-3 percent of the private sector 
workforce is unionized and their relative proportion is probably 
declining.  Labor disputes have, at times, led to violence, particularly 
in the banana industry but, generally, the level of labor activity is 
low.  In addition, many private sector workers belong to Solidarista 
Associations.  Solidarismo espouses employer-worker cooperation and 
offers members such benefits as credit unions and savings plans in 
return for their agreement to avoid strikes and other confrontational 
actions.  Solidarista associations registered with the Labor Ministry 
have over 134,000 members and the Solidarismo movement includes a 
significant number of unregistered associations as well, with estimates 
of total membership running as high as 225,000 (roughly 20 percent of 
the total workforce).

After a series of conflicts in recent years, 1994 saw a strengthened 
dialogue on basic issues between major trade union organizations and 
business groups, although there was little concrete progress.  However, 
labor-management relations are still adjusting to recent major changes 
in Costa Rican labor law.  These changes were in response to a June 1993 
petition by the AFL-CIO before the U.S. Trade Representative requesting 
that the U.S. Government withdraw Generalized System of Preferences 
(GSP) benefits from Costa Rica for violations of internationally 
recognized norms of worker rights.  Included in the modifications to the 
labor law were:  the repeal of certain sections of the labor code; 
modification of, and additions to, the Labor Code (increased protections 
from unjustified dismissal for union activists during the process of 
union formation, forbidding Solidarity Associations from acting as 
collective bargaining agents); and commitments to further changes by the 
Government of Costa Rica.  Satisfied that considerable progress had been 
achieved, the AFL-CIO withdrew the petition in November 1993, with the 
proviso that the petition could be reactivated if the AFL-CIO considered 
further progress insufficient.  There was little movement on the 
commitments made by the Government of Costa Rica in 1994, which led some 
local unions to call for a reactivation of the petition.

Complaints of violations of internationally recognized worker rights in 
Costa Rica have centered on two areas:  insufficient protection of trade 
union activists and sympathizers and preferential treatment given to 
Solidarista associations.  In 1994, the International Labor 
Organization's (ILO) Committee of Experts found that with the 1993 
changes in the labor code and the commitment to further reforms, 
progress had been made.  However, a number of separate cases filed by 
trade unions before the ILO are still under consideration.

The government of Costa Rica has ratified several ILO conventions, 
including Conventions 87, 98, 102, 122, 135, 138, 147 and 148.  At 
present, 8 conventions (110, 140, 149, 151, 152, 153, 154, and 155) that 
had been presented to the legislative Assembly for ratification as 
partial fulfillment of the commitments made in 1993, have been withdrawn 
from consideration.


N.  CAPITAL OUTFLOW POLICY:  



There are no limitations on capital exports by either local or foreign 
residents or enterprises.  Many Costa Ricans pay for raw materials and 
capital goods, or simply hedge against devaluation by keeping some funds 
abroad, mainly in U.S. banks.  There are no incentives for investment in 
other developing countries.


O.  FOREIGN DIRECT INVESTMENT:  

Costa Rica received significant foreign direct investment in 1994, 
particularly in the strong tourism sector.  Some consolidation occurred 
in the textile and apparel sector, however, with reduced new or 
expansion investment and some plant closures.  Slowed investment in the 
textile/apparel sector reportedly is primarily due to the passage of 
NAFTA (providing Mexico with at least a 20 percent cost advantage in 
apparel over Costa Rica) and the lack of NAFTA parity for CBI countries 
in this area.

While some companies have stalled investment decisions, anticipating the 
passage of a CBI enhancement program, others decided simply to forego 
further investment in Costa Rica at this time and located new investment 
elsewhere.  

Impressive growth in tourism reflects the increasing importance of this 
sector for Costa Rica.  Not only is this sector now the leading 
generator of foreign currency, but it is also the object of most new 
foreign investment.  During 1994, several new hotels opened or were 
under construction.  A new Camino Real, backed by Salvadoran and Costa 
Rican investors, and a Hampton Inn opened in the San Jose metropolitan 
area in late 1994.  A new $33 million, 245-room Marriott hotel located 
near the Juan Santamaria International Airport in San Jose is planned to 
be completed in 1996.  

The Ministry of Foreign Trade has acknowledged the difficulty of 
quantifying foreign direct investment in Costa Rica due to the absence 
of an official foreign investment register, but estimates total foreign 
investment in Costa Rica at approximately USD 70 million annually, with 
the U.S. being the main source of investment (other major foreign 
investors include German, Dutch, Italian, Spanish, Japanese and Korean 
companies).

A recent Economic Commission for Latin America (ECLA) report, based on 
IMF data, concluded that foreign investment in Costa Rica had increased 
substantially during the past decade.  It cited the following annual 
levels of foreign direct investment:

1987     $80 million
1989     $101 million
1991     $178 million
1993     $280 million

A survey of free trade zones (FTZs) provides valuable insights in 
foreign direct investment in Costa Rica.  According to the Government of 
Costa Rica's free trade zone corporation, the number of companies 
operating in FTZs increased from 127 in 1993 to 148 in 1994.  New 
investment in the FTZs totalled $25.9 million.  As of December 1994, 
U.S. companies had invested 53.8 percent of the total $262.6 million 
invested in the FTZs.  The balance of FTZ investment, by region/country, 
is as follows:  Costa Rica (15.5 percent); Europe (20 percent); Asia (7 
percent); and the rest of the Americas (3.2 percent).

Exports produced in free trade zones increased 26 percent in 1994, from 
$273.5 million to $345 million.  These exports represented 15.3 percent 
of Costa Rica's total exports.


CHAPTER VIII.  

                        TRADE AND PROJECT FINANCING

A.  BANKING SYSTEM

Costa Rica's banking system is dominated by three public sector banks 
which have a monopoly on demand deposits and are the only financial 
institutions with access to the Central Bank's discount window.  This 
monopoly was granted in 1948 when several private banks were 
nationalized.  The largest commercial bank, Banco Nacional de Costa 
Rica, has always been public.  1994 saw the failure of the oldest state 
bank, Banco Anglo Costarricense.  The Government of Costa Rica closed 
the bank after it incurred losses attributable to investments in 
Venezuelan debt, non-performing loans and possible malfeasance.  
Legislative and judicial investigations continue in a an effort to 
determine those responsible for the bank's failure.  Over the past 
twenty-five years, the barriers allowing private sector banks to operate 
have been eroding and today there are 23 private banks operating in 
Costa Rica.

The private sector banks provide all standard banking services in Costa 
Rica except for checking and savings accounts.  The Legislative Assembly 
is currently studying whether the private banks should be allowed to 
offer demand deposits and have access to the Central Bank's rediscount 
window.  Branches of foreign banks are not recognized in Costa Rica and 
any foreign bank which wants to operate in Costa Rica must incorporate 
locally complying with all local laws and regulations.  The only U.S. 
bank with a local operation in Costa Rica is Citibank which operates as 
a local bank (Citibank (Costa Rica), S.A.) and a brokerage company 
(Citivalores Puesto de Bolsa, S.A.).  In November 1994, Bancrecen, a 
wholly-owned subsidiary of the Mexican bank Bancrecer, began operations 
in Costa Rica.  It has grown rapidly and currently has approximately 40 
small offices throughout Costa Rica, with plans for at least 75 offices 
by the end of 1995.

The Central Bank of Costa Rica sets and directs all economic policy that 
affects the banking sector.  The Bank Examiners Office (Auditoria 
General de Entidades Financieras) of the Central Bank performs the 
banking oversight function.  Banks are not allowed to leverage their 
balance sheets by more than 11 times their capital.  The legal lending 
limit is 20% of total capital per customer.


B.  FOREIGN EXCHANGE CONTROLS AFFECTING TRADE

In February 1992, the Central Bank of Costa Rica liberalized the 
exchange rate system.  Since then, there have been further modifications 
to the regulations.  As of today, the following are the key provisions 
of the foreign exchange rate system in Costa Rica:   
  
  a)   Exporters are obligated to sell at least 20 percent of their 
export proceeds through a Costa Rican bank (public or private sector); 
and

  b)   Banks which purchases foreign exchange from an     exporter must 
transfer 34 percent of that foreign exchange     (the exporter's 20 
percent as described above) to the Central   Bank.

The Central Bank of Costa Rica controls the exchange rate through open 
market operations with the goal of maintaining stable exchange rates.


C.  GENERAL FINANCING AVAILABILITY

The local market in Costa Rica is characterized by very short-term 
loans, high interest rates and high spreads between deposit and loan 
rates.  The very high spreads (that help make private financial 
intermediation the fastest growing sector of the economy) are made 
possible by the relatively higher inefficiency of public sector 
commercial banks, the high commercial bank reserve requirements and high 
inflation -- all of which drive a wedge between deposit and loan rates.  
Given that the government dominates the banking and financial system, a 
high portion of funds available in Costa Rica are absorbed directly by 
the public sector to finance the fiscal deficit.

The public and private banks in Costa Rica all pursue trade financing 
activities including the opening of letters of credit of importers, 
financing for exporters, and other trade services.  

D.  HOW TO FINANCE EXPORTS/METHODS OF PAYMENT

Letters of credit are by far the most common and mutually secure method 
of payment in international trade.  With this term, the U.S. exporter 
receives payment prior to the importer receiving the goods.  For Costa 
Rica, we strongly recommend this term of payment, especially if the 
business relationship between the U.S. exporter and the local importer 
is still developing.  Only after a long-term business relationship has 
been established between the exporter and the importer should a U.S. 
company consider granting an open account (e.g. payment within 30 days 
after receipt of goods).  Transactions of USD 4,000 or less could be 
handled through advance payment, bank transference prior to shipment, or 
sight drafts.

In recent years, there has been very little bank credit available for 
financing exports to Costa Rica because the country defaulted on its 
bank debt in the early 1980's.  However, Costa Rica restructured its 
debt in 1990 with its successful buy-back arrangement under the Brady 
plan.  Consequently, over the past three years there has been a 
progressive opening of financing for exporters to Costa Rica for the 
short term (less than one year) from international banks.  For longer 
tenors, the lenders usually require sovereign risk coverage.  The 
EXIMBANK provides coverage tenor, but only short-term coverage for U.S. 
exports to public sector entities.  All traditional methods of payment 
for exports are available in Costa Rica, such as letters of credit and 
direct transfers of funds abroad.


E.  TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE

Financing of export activities is available to companies with majority 
Costa Rican ownership from various foreign sources (multilateral banks, 
etc.), made available for intermediation by private and public 
commercial banks, through the Central Bank, in local currency as well as 
dollars.  However, due to exchange risks, most borrowers (except for 
those with significant sources of income in dollars, deutschemarks, 
etc.) prefer to borrow in local currency which is relatively scarcer and 
much more expensive than dollar financing.  Dollar financing sometimes 
becomes difficult also because of the reluctance of most lenders to take 
long-term exposure to the sovereign risk of Costa Rica.  Therefore, most 
of the long-term projects undertaken in Costa Rica by foreign investors 
have a high equity component and usually have some type of offshore 
guarantee to cover the risk to the lenders.

It is typical for large multinationals to provide parent company 
guarantees to cover the risk of projects.  When such a guarantee is not 
available, U.S. lenders, if willing to assume the credit risk, will 
typically request that an organization like OPIC or MIGA provide an 
insurance policy to cover the sovereign risks (transfer risk, 
expropriation, and political violence).

U.S. Government Export Finance Programs:

The Export-Import Bank (EXIMBANK) is the main official U.S. agency 
involved in providing and encouraging credits to help finance U.S. 
exports.  EXIMBANK engages in direct lending, both to foreign buyers and 
to intermediate private parties who on-lend to buyers.  However, the 
bulk of EXIMBANK's export-financing is accounted for by loan insurance 
and loan guarantees.  EXIMBANK has no offices in Costa Rica.

The U.S. Department of Agriculture (USDA) has made available a regional 
GSM-102 export credit guarantee program to encourage imports of U.S. 
farm products.  Costa Rica is no longer eligible for PL-480 food aid, 
and it is hoped the GSM-102 program will enable Costa Rica to bridge 
over to purchases on normal commercial credit terms.  The Central 
American Bank for Economic Integration (BCIE) in Tegucigalpa has been 
named as the correspondent bank to administer the $60 million program.  
Costa Rican importers contract with U.S. exporters, as in any commercial 
transaction, who in turn pay a fee to USDA for the guarantee that the 
importer's letter of credit is valid.

The U.S. Small Business Administration (SBA) provides financial and 
business development assistance to encourage and help small business 
develop export markets.  SBA offers both loans and loan guarantees.

The U.S. Trade Development Agency (TDA) provides grant loans for pre-
feasibility studies overseas on projects with high U.S. product and 
service export potential.


F.  PROJECT FINANCING/MULTILATERAL INSTITUTIONS/PROJECTS SUPPORTED

Government institutions in Costa Rica obtain funds for their projects 
from multilateral development banks, such as the Inter-American 
Development Bank (IDB) and the World Bank.  These multilateral 
development banks finance projects in the areas of energy development, 
health, education, transportation, sanitation, sewage, agriculture, and 
private sector development.  The procurement procedure requires pre-
feasibility studies, environmental impact assessments, and publication 
of public tenders for foreign competition according to each bank's 
regulations.  U.S. exporters are encouraged to contract with a local 
representative for successful participation on bids.  In addition to IDB 
and World Bank financing, project financing is available for companies 
with majority Costa Rican ownership from the banking system, with either 
the banks' own money or from funds made available by the Central 
American Bank for Economic Integration (CABEI), the Venezuelan Petroleum 
Fund (interest paid on loans to buy oil from Venezuela) and other 
sources.  The foreign share of international projects is generally 
financed abroad, from such sources as U.S. private banks, guaranteed by 
EXIMBANK, OPIC or MIGA.

While financing is available for most activities, preference is given to 
export industries, especially if the loan is made in dollars and from 
funds provided by foreign sources.  Recent projects include hotels, 
tourist resorts, fast food franchises, non-traditional export crops, 
etc.

936 Financing:  Through December 31, 1994, 936 funds (monies made 
available to U.S. investors in CBI countries from tax exemptions enjoyed 
by U.S. corporations working in Puerto Rico) have financed the 
development of 37 projects in Costa Rica.  936 loans totalled USD 
65,706,000 and supported a total investment of USD 205,517,566 in these 
37 projects, which included investments in tourism, textile/apparel 
production, agroindustry and manufacturing facilities.

Inter-American Development Bank:  From 1961 to 1993, Costa Rica received 
approval from the IDB of 90 loans totalling USD 2.143 billion.  These 
funds have been invested primarily in energy, agriculture, fisheries, 
public health and environmental conservation projects.  No new loans 
were approved in 1994.

For all of Costa Rica's historical success in receiving approval of IDB 
financing, Costa Rica is also the slowest of all the Latin American 
countries to take advantage of the resources.  Consequently, of the 19 
loans (totalling $1.228 billion) for Costa Rica which IDB has approved 
in the last ten years, only $298 million has been disbursed to date.  
About $90 million was disbursed in 1994 and it is expected that $190 
million will be disbursed in 1995.  Disbursements generally await the 
necessary Costa Rican legislative ratification of the loans, which 
averages 18 months compared to 9 months for other countries.  This 
pattern of delay has resulted in concrete costs to Costa Rica, as 
evidenced by the April 1994 loss of a USD 41 million loan for a sectoral 
adjustment program for agriculture because the Legislative Assembly was 
unable to take required action within 24 months of the approval of the 
loan.  In addition, Costa Rica has to pay fees on the undisbursed 
portion of approved loans.


G.  LIST OF BANKS WITH CORRESPONDENT BANKING IN U.S.

State-owned commercial banks include:  Banco Nacional de Costa Rica, 
Banco de Costa Rica, Banco Credito Agricola and Banco Internacional de 
Costa Rica.  Private commercial banks include:  Banco Interfin, Banco 
Banex, Banco Cooperativo Costarricenses (Bancoop), Banco de San Jose, 
Banco de Fomento Agricola, Banco BCT, Banco del Comercio, Banco 
Mercantil de Costa Rica, Banco Metropolitano, Banco Panamericano, Banco 
Continental, Banco de Cofisa, Banco Federado de Cooperativas de Ahorro y 
Credito, Banco Fincomer, Banco Exterior, Banco de la Industria, Banco 
Lyon, Banco Solidarista Costarricense, Banco de la Union and Banco 
Citicorp Costa Rica.  Bancrecer, a Mexican bank, began operations in 
Costa Rica under the name Bancrecen in 1994.  The Costa Rican banking 
system also includes a workers' bank (Banco Popular) and a state housing 
bank (Banco Hipotecario).  All commercial banks in Costa Rica have 
correspondent relationships with major U.S. banks.  


CHAPTER IX.  

                                   BUSINESS TRAVEL


A.  BUSINESS CUSTOMS

Costa Rican business executives place great importance on
personal contacts with foreign suppliers.  Appointments should
take place in the hosts' facilities instead of a hotel room.
Unlike the protocol in some neighboring countries, formal business 
attire is appropiate (and expected) for most business and commerical 
encounters.

Typical working hours are from 08:00 AM to 12:00 PM, and from
02:00 PM to 06:00 PM.  The Costa Rican Government has a
continuous working schedule from 07:30 AM to 04:00 PM.  Most
banks open from 09:00 AM to 03:00 PM.


B.  TRAVEL ADVISORY AND VISAS

Petty crime is frequent.  Thefts, especially in urban areas, and
car break-ins are common.  Thefts take place on the street and from 
cars.  U.S. passports are a particular target.  The loss or theft of a 
U.S. passport should be reported immediately to the local police and the 
U.S. Embassy.  Some remote trails in national parks have been closed 
because of the low number of visitors and reported robberies of hikers 
in the area.  Tourists should check with forest rangers for current park 
conditions. 

A passport is not/not required to enter Costa Rica either for business 
or tourism, however the U.S. Consulate in Costa Rica highly recommends 
the use of a valid passport to enter the country.  At the discretion of 
Costa Rican authorities, travelers are sometimes admitted with the 
original copy of a certified U.S. birth certificate and photo I.D. for 
tourist or business stays of up to 90 days.   When a passport is not 
used travelers are issued a tourist card upon arrival at the airport.  
U.S. citizens must have an onward or return ticket to obtain a tourist 
card.  Upon departure every tourist is required to pay an airport tax 
(in 1995/$17.00).

To obtain additional and updated information on entry and exit 
requirements, travelers can contact the Consular Section of the Embassy 
of Costa Rica at 1825 Connecticut Avenue N.W., Suite 211, Washington, 
D.C. 20009; Tel: (202) 328-6628 or the nearest Costa Rican consulate in 
Los Angeles, Miami, Chicago, New Orleans, New York or Houston. 

U.S. AND COSTA RICAN (C.R.) HOLIDAYS (CY '96)

Jan.  1   - U.S./C.R. New Year's Day
Jan. 15   - U.S. Martin Luther King's Birthday
Feb. 19   - U.S. President's Birthday
Mar. 19   - C.R. St. Joseph's & St. Paul
Apr.  4   - C.R. Holy Thursday
Apr.  5   - C.R. Good Friday
Apr. 11   - C.R. Juan Santamaria
May.  1   - C.R. Labor Day 
May. 27   - U.S. Memorial Day
Jun. 10   - C.R. Corpus Christi
Jun. 29   - C.R. St. Peter and St. Paul
Jul.  4   - U.S. Independence Day
Jul. 25   - C.R. Annexation of Guanacaste
Aug.  2   - C.R. Our Lady of Los Angeles
Aug. 15   - C.R. Assumption Day
Sep.  2   - U.S. Labor Day
Sep. 15   - C.R. Independence Day
Oct. 10   - U.S. Columbus Day
Oct. 12   - C.R. Columbus Day
Nov. 11   - U.S. Veteran's Day
Nov. 21   - U.S. Thanksgiving Day
Dec.  8   - C.R. Immaculate Conception
Dec. 25   - U.S./C.R. Christmas Day

It is recommended that business trips to Costa Rica not be scheduled 
immediately before, or immediately after local or U.S. holidays.


D.  BUSINESS INFRASTRUCTURE

TRANSPORTATION:
Costa Rica's infrastructure is among the best developed in the region.  
There are more than 7,000 kilometers (4,400 miles) of principal highways 
and roads and some 16,000 kilometers (9,600 miles) of rural roads.  
However maintenance of these roads is far from optimal.  Cars and 
drivers both suffer on Costa Rican roads and highways which annually 
handle rains of over 120 inches. Costa Rica has more than 500 kilometers 
(300 miles) of railway track, but little of it is currently in use.  
There are also more than 100 small private landing fields serving 272 
registered aircraft.   

All over-land cargo, except bananas from the Pacific ports, are 
transported via truck.  San Jose's principal airport, Juan Santamaria 
International Airport, is served by 19 international passenger airlines 
and six cargo airlines.  To serve the Guanacaste tourist area, the 
Liberia International Airport was inaugurated in December 1991 but is 
not fully in service yet. Once completely operational (tentatively 
scheduled for October 1995), it will boost the growing tourism market in 
Guanacaste and the Gulf of Papagayo tourist area.  

Regional airports offer regularly scheduled domestic flights to Limon, 
Golfito, Quepos and Tamarindo.  There is good taxi and public bus 
service in the capital (San Jose).  Rent-a-car services are also 
available.  Taxis (official taxis are red) are the recommended means of 
travel for the business executive.


LANGUAGE:
Although Costa Rica is a Spanish-speaking country, most business
executives speak English.


COMMUNICATIONS:
Costa Rica enjoys an advanced telecommunications network, although some 
67,000 Costa Ricans are waiting for a telephone line.  Telephone 
service, in general, is reliable.  The country also enjoys both public 
cellular services and data transmission services.  

AT&T, Sprint and MCI are available from Costa Rica.

HOUSING:
Living conditions are very good, although not inexpensive.   The 
perennial spring climate, scenic beauty, housing, food, and ancillary 
services make it a comfortable (but not/not necessarily easy) place to 
live.

Costa Rica offers foreign business travelers a wide variety of
suitable, modern hotels and excellent bed and breakfast facilities 
located in San Jose, and in neighboring cities.  Prices are affordable 
and business services of all type (e.g. fax, conference rooms, 
projectors, etc.) are available in most larger hotels.  


HEALTH:
In general medical services (excluding some overcrowded and ill-equipped 
hospitals) are very good.  All Costa Rican workers and their dependents 
are covered by a public healh care system administered by the Costa 
Rican Social Security Fund (Caja Costarricense de Seguro Social-CCSS).   
Many doctors in both the national health system and private clinics have 
been trained abroad and fluent in English.  Specialists are available in 
almost all branches of medicine.  Although seriously overcrowded, 
Hospital Mexico and the San Juan de Dios Hospital are the best-equipped 
in Central America.  Private clinics accept major credit cards.

As in any tropical climate country, insects thrive.  Although the
mosquitoes in San Jose do not carry malaria the dengue mosquito
has been found in Costa Rica.  Numerous eradication programs are
presently in operation throughout Costa Rica.


FOOD:
Modern shopping centers and supermarkets, along with the
traditional open air markets, provide a complete variety of goods
and services.  Vegetables, meat, poultry, fish, fruit, and
pasteurized dairy products are especially tasty and fresh.
Numerous restaurants specialize in local, Oriental, American, and
Continental cuisine.





APPENDIX A

                            COUNTRY DATA/PROFILE


Population  -- 3,342,154 (July 1994) estimate

Population growth rate -- 2.3 percent 

Religions -- Roman Catholicism (90-95 percent); Protestantism (5-10 
percent)

Government System -- A democratic republic under a constitution 
established in 1949.  The president and the 57-member unicameral 
legislative assembly are elected every four years.  The last election 
was in February 1994.  Members of the Supreme Court and the Supreme 
Electoral Tribunal serve for renewable eight-year terms and are 
appointed by the Legislative Assembly.  The government of Costa Rica has 
a long history of respect for democratic values and basic political 
freedoms, strong protections for human rights, and a system of 
government based on the separation of powers and extensive 
constitutional checks and balances.  The army was abolished in 1949.

Languages -- Spanish (official); English is spoken around Puerto Limon 
and is the most common second language.

Work week -- 40-48 hours


Sources:  National Statistical Institute, Costa Rica Bureau of 
Statistics and Census



APPENDIX B 

                        COUNTRY DATA


  COSTA RICA
  
Estimated Projected  
                                   1993     1994     1995     1996

1. GDP
   (MILLIONS CURRENT USD)          7,524    8,253    8,929    9,286


2. GDP PERCENT GROWTH   
   (in l966 "constant" colones)        6.4      4.5      3.0      4.0


3. GDP PER CAPITA
   (current USD)                   2,504    2,687    2,843    2,900


4. GOVERNMENT SPENDING
    AS A % OF GDP                     17.7     21.3     20.3     19.0

     
 5. CONSUMER PRICE INDEX
    (% INCREASE DEC-DEC)               9.8     19.9     22.0     15.0

 6. UNEMPLOYMENT 
    (% LABOR FORCE)                    4.1      4.2      4.6      4.6

 7. FOREIGN EXCH RESERVES
    (MILLIONS USD, NET)            1,041      982      872      900

 8. AVERAGE USD EXCH RATE            142.8    157.6    181.5    210

 9. DEBT SERVICE RATIO
    (% SERVICE/EXPORTS)               28.2     27.2     22.6     25.0




  APPENDIX C 
  COSTA RICA'S FOREIGN TRADE

                                   1993     1994     1995     1996
1. TOTAL EXPORTS
   (FOB) USD MILLIONS              2,049    2,224    2,387    2,550

2. TOTAL IMPORTS
   (CIF) USD MILLIONS              2,885    3,087    3,240    3,400

3.  EXPORTS TO USA                   850      950    1,050    1,100

4.  IMPORTS FROM USA               1,300    1,450    1,600    1,700



  APPENDIX D
  FOREIGN DIRECT INVESTMENT

Comprehensive foreign investment data is not available in Costa Rica 
since no offical register is maintained.  A partial listing of foreign 
firms with operations in Costa Rica, provided by the Costa Rican 
Ministry of Foreign Trade, is attached.   Please consult Chapter VII: 
Investment Climate of this Country Commercial Guide for additional 
information on investments in Costa Rica.  Additionally the local 
chapter of the American Chamber of Commerce (AMCHAM-Costa Rican American 
Chamber of Commerce) has two excellent publications in reference to 
investments in Costa Rica: Doing Business and Investing in Costa Rica 
and AMCHAM Membership Director.



A.G. Siemens
Acron Scantronics
Advanced System for Cellular
Afa Corp.
Alarmas Hawkran
Altair
Alumiform Concrete
American Pheanaseals
American Sanitary
American Standard
Amstel Flor
Ario Farms
Automatic Coil
Avon (J.P. Nina S.A.)
Baxter
Bayer, AG
Betex S.A.
BLH Electronics
Boo Hung de Costa Rica
Bourns Co.
Bristol Myers Intl. Group
British American Tobacco
C & K Components
Canada Dry Intl.
Carrington Labs
Cartilag Technology
Cassidy-Aviel Mfg. Co.
Castle & Cooke, Inc.
Cerateck S.A.
Chas. Todd de Costa Rica S.A.
Chevron Intl.
Citicorp
Colgate Palmolive
Comitex
Cricket Hosiery
Crown Cork Co.
Crystal Brands
Cutler-Hammer
Cyanamid Inter-American Corp.
Daewoo Corp.
Dan Howard Ind.
Data Development
Diamond Seafood
Document Handling Ltd.
Dynavest
Empresas Barcelo
F.A.M.
Fidesplants S.A.
Firestone Tire & Rubber
Full Bright Top Priority
G.D. Searle
Garjjo Inc.
Gerber, Inc.
Gilmore
Glass Gallery
Gordijnen Ind.
Grupo Sol Bavaria
GTE Sylvania
H.B. Fuller Corp.
H.V.A.
Hanes Printables
Harwood Co.
Heineken Brewery, BV
Hi Land Heliconia
Hitachi Sales Corp.
  of America
Holiday Inns, Inc.
IBM World Trade Group
Industrial Devices, Inc.
Industrias Realtex
Industrias Textico S.A.
Industrias Textiles Rose
International Arquitecture Products
International Executive Service Corp.
J & S
J. Walter Thompson Co.
JAC Valstar
Japan External Trade
Jergens Sukia
Jewelmont Corp.
Jin Lee Corp. 
Jockey
Johnson & Johnson INt.
Joseph E. Seagram & Sons
Judy Bond S.A.
Jung Lin Ltd.
Kimberly-Clark
KPMG Peat, Marwick
L.M. Ericsson Eaton Corp.
Lee Jeans
Levi Strauss & Co.
Link
Liz Claiborne
Maanen & Mantel
Maidenform
Marubeni
Matsushita Electric
Matusalem Rum
McCann Erickson Int.
Memory Images
Mennen Co.
Merck, Sharp & Dohme Corp.
Miles Labs
Moore Business Forms
Motemtronics
Motorola, Inc.
Muebles Sol S.A.
N & B Jewelry
Newport Pharmaceuticals, Inc.
North & Judd
Old Mission Textiles, Inc.
Olivera & Assoc.
Omnitel Inc.
Oriflame International
Ornaflor S.A.
Oxford Industries
Pacific Aquaculture
Pacific Exports
Paul Siegler
Pepsico, Inc.
Permatex Loctite, Inc.
Pfizer
Phelps Dodge Intl.
Phillip Morris Intl.
Pickle's Delight
Plumrose
PPI Del Monte
PRI Industriales S.A.
Price Waterhouse
Prolex S.A.
Rawlings Sporting Goods
Peckitt & Colman, PLC
Reliability Inc.
R.J. Reynolds Ind.
Robert Schneider
Roche Labs
Rohm & Haas Co.
Sachtler
Samsung de Costa Rica
Savitas Trading Co.
S.C. Johnson & Son Inc.
SCDB S.A.
Scantronics S.A.
Scholz-Staiger
Schonfeld Neckwear
Scott Paper
Sherwin Williams
Sjerps Boenbollena Rica
Skyline
Smart Shirts
Smith, Kline & French, INc.
Smithkline Beecham
Spinnler-Luescher
Southeast Manufacturers
Sports Products
Spring City Mills
Square D Co.
Stafford Higgins
Sterling Products Intl.
Strawlewer Blumen National Handel
Sunkyong
Sunline Industries
Super Class Tours
Suttle Costa Rica S.A.
Team Works de Costa Rica
Tecnical Machinery
Texaco Caribbean
Texeda S.A.
Textile Trend
Textiles Dooha
Textiles Essex Intl. S.A.
Textiles Industrial El Toble
The Bali Company
The Lovable Company
The Willliam Carter Co.
Ticaknits
Tiny Tots
Todd de Costa Rica
Tomen 
Toshiba
Tropiflor
Ultratime Inc.
Unisys
United Brands Co.
US Magnetics of Korea
Van Heusen Co.
VF Corp.
Warnaco de Costa Rica
Warners
West Point Pepperell
Westex
Widmar S.A.
Wrangler de Costa Rica
Xerox Corp.
YGF de Costa Rica
YKK
Young & Hat
Zeeman Mfg. Co.




APPENDIX E

                             U.S. AND COUNTRY CONTACTS


1.  U.S. EMBASSY COMMERCIAL, AGRICULTURAL AND TRADE RELATED CONTACTS

U.S. Department of Commerce
Commercial Service
Unit 2508
APO, AA 34020
T: (506) 220-3939/220-2454  F: (506) 231-4783

Ms. Mar?a B. Galindo, Commercial Attach?, (U.S. citizen/diplomat)
Mr. Victor Cambronero, Senior Trade Specialist
Mr. Rodrigo Rojas, Trade Specialist
Ms. Hazel Salazar, Commercial Assistant/Office Manager
Ms. Laura Calzada and Ms. Mari Vargas, Commercial Assistants

U.S. Department of Agriculture
Foreign Agricultural Service (FAS)
Unit 2507
APO AA 34020
T: (506)220-3939 Ext. 2233  F: (506)232-7709

Mr. Scott E. Bleggi, Agricultural Attach?
Mr. Victor Gonz?lez, Agricultural Specialist
Ms. Tatiana Quir?s, Marketing Assistant

Animal and Plant Health Inspection Services (APHIS)
Dr. Eric Hoffman, APHIS Attach?
T:  (506) 220-4545  Ext. 3420  F: (506) 232-7709

U.S. Department of State
Economic Section
APO AA  34020
T: (506) 220-3939  F: (506) 220-2305

Mr. Ben F. Fairfax, Economic Counselor
Ms. Debra Juncker, Economic Officer
Mr. Jose Maria Quir?s, Economist


2.  AMCHAM (Local American Chamber of Commerce)  

COSTA RICAN-AMERICAN CHAMBER OF COMMERCE (AMCHAM)
(CAMARA COSTARRICENSE-NORTEAMERICANA DE COMERCIO--AMCHAM)
USA Mailing Address:  1576 P.O. Box 025216 
Miami, FL 33102-5216
Within Costa Rica:  Apdo 4946-1000
San Jos?, Costa Rica
T: (506)220-2200 F: (506)220-2300
Contact: Ms. Lynda Solar, Executive Director

3.  COUNTRY TRADE AND INDUSTRY ASSOCIATIONS IN KEY SECTORS 

COSTA RICAN CHAMBER OF COMMERCE/CAMARA DE COMERCIO DE COSTA RICA
Apartado 1114
1000 San Jos?, Costa Rica
T: (506)221-0005/221-0124  F:  (506)233-7091
Contact: Mr. Julio Ugarte, Executive Director

CHAMBER OF REPRESENTATIVES OF FOREIGN FIRMS CAMARA DE REPRESENTANTES DE 
CASAS ETRANJERAS (CRECEX) 
Apartado. 3738
1000 San Jos?, Costa Rica
T: (506)253-0126  F: (506)234-2557
Contact: Mr. Walter Marin, Executive Director

COSTA RICAN CHAMBER OF INDUSTRIES
CAMARA DE INDUSTRIAS DE COSTA RICA
Apartado 10003-1000
San Jos?, Costa Rica
T: (506)223-2411  F:   (560)222-1007
Contact: Mr. Helio Fallas, Executive Director

NATIONAL CHAMBER OF AGRICULTURE AND AGRO-INDUSTRY
CAMARA NACIONAL DE AGRICULTURA Y AGRO-INDUSTRIA
Apartado 1671
1000 San Jos?, Costa Rica
T: (506)221-6864/233-8567  F: (506)233-8658
Contact: Mr. Leonel Peralta Volio, President

CHAMBER OF FOOD INDUSTRY OF COSTA RICA/CAMARA COSTARRICENSE DE LA 
INDUSTRIA ALIMENTARIA (CACIA)
Apartado 7097
1000 San Jose, Costa Rica
T: (506)234-0966  F: (506)225-0901
Contact: Mr. Erick Quiros, Executive Director

COSTA RICAN CHAMBER OF TEXTILE AND CONFECTION
CAMARA TEXTIL Y DE CONFECCION (CATECO)
Apartado 1512 1002 Paseo de Estudiantes
San Jos?, Costa Rica
T: (506)225-1254/253-5936  F:  (506)225-1078
Contact: Mr. Walter Beard, President

CHAMBER OF HIGHWAY & BRIDGE CONSTRUCTION
CAMARA DE CONSTRUCTORES DE CARRETERAS Y PUENTES
APDO. 3803, 1000
San Jos?, Costa Rica
T/F: (506) 221-9418
Contact: Ing. Rafael A. Sanchez Bonilla, Executive Director

CHAMBER OF ARCHITECTS AND ENGINEERS 
CAMARA DE CONSULTORES EN ARQUITECTURA E INGENIERIA
APDO 10263
1000, San Jose, Costa Rica
T: (506)224-0244   F: (506)224-2882
Contact: Ing. Daniel Baudrit Ruiz, M.Sc, President

CHAMBER OF CONSTRUCTION OF COSTA RICA
CAMARA COSTARRICENSE DE LA CONSTRUCCION
Apartado 5260
1000 San Jos?, Costa Rica
T: (506)221-9814  F:(506)221-7952
Contact: Ing. Fernando Rojas Brenes, Executive Director

COSTA RICAN ASSOCIATION OF THE PLASTIC INDUSTRY
ASOCIACION COSTARRICENSE DE LA INDUSTRIA DEL PLASTICO (ACIPLAST)
Apartado 8247
1000 San Jose, Costa Rica
T: (506)255-0961  F:  (506)255-09-61
Contact: Mr. Felipe Vargas, President

COSTA RICAN CHAMBER OF RESTAURANTS & RELATED AFFAIRS
CAMARA COSTARRICENSE DE RESTUARANTES Y AFINES
Apartado 142-1002 San Jose 
T: (506) 221-7405  F:(506) 233-1947
Contact: Mr. Ronald Capra, President

CHAMBER OF AUTOMOTIVE AND RELATED TOPICS OF COSTA RICA (CCA)
(FORMER ACIVU) CAMARA COSTARRICENSE AUTOMOTRIZ Y AFINES
Apartado Postal 790 - 1150 La Uruca
San Jos? Costa Rica
T: (506)233-3331/223-7343 F: (506)223-7343
Contact: Mr. Efra?n Xirinachs Chamberlain, President

COSTA RICAN ASSOCIATION OF IMPORTERS OF AUTOMOTIVE PARTS
ASOCIACION DE IMPORTADORES DE PARTES AUTOMOTRICES (AIPA)
Apartado 242 - 1002 Paseo de Estudiantes
San Jos?, Costa Rica
T/F:  (506)222-8168
Contact: Mr. Ricardo Hernandez, President

COSTA RICAN ASSOCIATION OF IMPORTERS OF VEHICLES,
EQUIPMENT & MACHINERY/ASOCIACION DE IMPORTADORES DE VEHICULOS, EQUIPO,  
MAQUINARIA Y AFINES (AIVEMA)
Apartado 413
1000 San Jose, Costa Rica
T: (506)222-5513  F: (506) 233-5432
Contact: Mr. Guillermo Charpantier, President

ASSOCIATION OF CONCESSIONAIRES OF AMERICAN VEHICLES/ASOCIACION DE 
CONCESIONARIOS DE VEHICULOS AMERICANOS (ACOVA)
Apartado 1429
1000 San Jos?, Costa Rica
T: (506)220-1582 F: (506)232-2571

CAMARA NACIONAL DE AGRICULTURA (NATIONAL CHAMBER OF AGRICULTURE)
Mr. Leonel Peralta Volio, President
Apdo. 1671-1000 San Jos?
T: (506)221-6864/233-8567   F: (506)233-8658

CAMARA NACIONAL DE GANADEROS
Federation of Chambers of Livestock Breeders
Apdo. 6464-1000 San Jose
T: (506)221-9268/223-1059 F: (506)233-2180/224-9181
Contact: Jose Alberto Amador Zamora, President


4.  COUNTRY GOVERNMENT OFFICES/AGENCIES

Costa Rican Customs Office/Direcci?n General de Aduanas
San Jose, Costa Rica
T:  (506)255-3011/233-9525 F: (506)223-7334
Contact: Lic. Gerardo Bola?os Alvarado, Director

Ministry of Foreign Trade/Ministerio de Comercio Exterior
Apartado 96, Montes de Oca
San Jose, Costa Rica
T: (506)222-5855  F:  (506)233-9176
Contact: Lic. Jos? Rossi, Minister 

Ministry of Economy, Industry and Commerce
Ministerio de Econom?a, Industria y Comercio
Apartado 10216-1000
San Jose, Costa Rica
T: (506) 257-8511/221-3798  F: (506) 222-2305
Contact: Lic. Mar?a Eugenia Chac?n/Ms. Fanny Levin, Assistant, Labeling 
and Norms Department

Consejo Nacional de Produccion/CNP/(National Production Council)
Apdo. 2205-1000, San Jose
T:(506) 257-9355   F: (506)255-4729
Contact: Mr. Javier Flores, Executive President

Ministry of Agriculture and Livestock
Ministerio de Agricultura y Ganader?a
Apartado 10093-1000, San Jose
T: (506)231-1939   F: (506)232-2103
Contact: Mr. Roberto Solorzano, Minister

  --Office of Agricultural Protection 
  Direccion de Proteccion Agropecuaria
  T: (506) 231-1939  F: (506) 231-5004
  Contact:  Ing. Jimmy Ruiz Blanco, Chief
  --Animal Health/Salud Animal
  Contact: Mr. Jose Francisco Coronado
  --Sanidad Vegetal/Plant Health
  Ing. Fernando Ocampo
  T: (506) 260-8300  F: (506) 260-8290
    
Instituto Costarricense de Electricidad (ICE)
(Costa Rican Institute of Electricity and Telecommunication)
Apartado 10032-1000
San Jose, Costa Rica
T: (506)  220-7630  F: (506)231-5354
Contact: Ing. Teofilio de la Torre, Executive Director

Instituto Costarricense de Acueductos y Alcantarillado (AYA)
(Costa Rican institute of Aqueducts and Sewage)
Apartado 5120-1000
San Jose, Costa Rica
T: (506)233-2155  F: (506)255-7334
Contact: Dr. Ana Gabriela Ross, Executive President

Ministry of Public Works and Transportation
Ministerio de Obras P?blicas y Transportation
Apartado 10176
San Jose, Costa Rica
T: (506)226-7311 F: (506)227-1434
Contact: Mr. Bernardo Arce Gutierrez, Minister

Ministry of Tourism/Ministerio de Turismo
Apartado 777-1000
San Jose, Costa Rica
T: (506)233-9605  F: (506)223-5107
Contact: Ing. Carlos Roesch, Minister

Ministry of Health/Ministerio de Salud
Apdo. 10123-1000 San Jose
T/F:  (506)255-4426
Contact: Dr. Guillermo Lopez Calleja, Director,  Food Registration & 
Control Department

Ministry of Natural Resources, Energy and Mines
Ministerio de Recursos Naturales, Energia y Minas
Apartado 10104-1000
San Jose, Costa Rica
T: (506)233-4533 F: (506)257-0697
Contact: Ing. Rene Castro Salazar, Minister
Contact for Joint Implementation Projects: Mr. Steve Petricone
T: (506)233-4533 F: (506) 257-0697         

Costa Rican Promotion and Export Center/Centro para la Promocion y 
Exportacion/CENPRO
Apartado 5418-1000
San Jose, Costa Rica
T: (506)221-7166  F: (506)223-5722
Contact: Ms. Helena Baruch, Executive Director

Costa Rican Investment and Development/Costa Rica Coalition for 
Development Initiatives/CINDE
Apartado 7170-1000
San Jose, Costa Rica
T:  (506)220-0036  F: (506)220-4754
Contact: Mr. Danilo Arias, Investment Executive

Free Trade Zone/Corporacion de la Zona Franca de Exportacion
Apdo 96 San Pedro de Montes de Oca
Tel: (506) 222-5855   Fax (506) 233-5755
Contact: Mr. Alvaro Valverde, Marketing Director


5.  LIST OF IN-COUNTRY MARKET RESEARCH FIRMS

AMCHAM/Costa Rican American Chamber of Commerce should be consulted 
about their ability to conduct market research.
COSTA RICAN-AMERICAN CHAMBER OF COMMERCE (AMCHAM)
(CAMARA COSTARRICENSE-NORTEAMERICANA DE COMERCIO--AMCHAM)
USA Mailing Address:  1576 P.O. Box 025216 
Miami, FL 33102-5216
Within Costa Rica:  Apdo 4946-1000
San Jos?, Costa Rica
T: (506)220-2200 F: (506)220-2300
Contact: Ms. Lynda Solar, Executive Director

CA Consulting (Central America Consulting Inc.)
P.O. Box 1425-2050
San Jose, Costa Rica
T/F:   (506)253-3235
Contact: Mr. Carlos Manuel Echeverria

CONALAS, S.A.
Apartado Postal 3388-1000
San Jose, Costa Rica
T: (506)223-1450  F: (506)222-5156
Contact: Lic. Wilburg Jimenez Castro, CPA, President
Lic. Hiram Sotela

DESARROLLO MODERNO DE EMPRASES, S.A.
APARTADO Postal 3031-1000
San Jose, Costa Rica
T: (506)236-0007  F: (506)240-9833

Grupo Hay de Costa Rica
P.O. Box 103-2300 Curridabat
T: (506) 220-0533  F: (506) 231-4520
Contact: Mr. Raul Heraud, General Manager 

KPGM Peat Marwick
P.O. Box 10208-1000 San Jose
T: (506) 220-1366  F: (506) 220-0408
Contact: Mr. Federico Golcher, Partner

Multivex, S.A.
P.O. Box 107-1007 Centro Colon
San Jose, Costa Rica
T: (506) 232-0547  F: (506) 232-8650
Contact: Mr. Johnny Tarcica, President
(Multivex has already completed a number of market studies.) 

PROTRADE
International Trade and Consulting Co.
802-1002 P.E.
San Jose, Costa Rica
T: (506)253-0820  F: (506)223-6574


6.  MULTILATERAL FINANCE ORGANIZATIONS IN COSTA RICA

INTERNATIONAL FINANCIAL CONSULTANTS (Servicio de Asesoria Empresarial, 
Centroamerica y el Caribe) (affiliated with the World Bank)
Apartado 98, Escaz?
San Jos?, Costa Rica
T: (506) 228-4124  F: (506) 228-6963
Contact: Mr. Christopher Hansen, General Manager

WORLD BANK
Apartado 11925 - 1000
San Jos?, Costa Rica
T: (506) 296-5923    F: (506) 232-8679
Contact: Ms. Shahla Torabi, Regional Representative to Central America

INTERNATIONAL DEVELOPMENT BANK (IDB)
Apartado 1142 - 1007 Centro Col?n
San Jos?, Costa Rica
T: (506) 233-3244   F: (506) 233-1840
Contact: Mr. Juan Manuel Corredor, Local Representative

7.  MULTILATERAL DEVELOPMENT BANK OFFICES WITHIN THE U.S. 

INTER-AMERICAN DEVELOPMENT BANK
US&FCS Liaison Office
1250 H Street, N.W.
Washington, D.C. 20005
T: (202) 942-8260/8262  F: (202) 942-8275
Contact: Ms. Judith Henderson, Director, Commerce Liaison Office
Ms. Michele Miller, Procurement Liaison Officer

MULTILATERAL DEVELOPMENT BANK OFFICE
14th and Constitution, NW
Washington, D.C. 20007
T: (202) 482-3399  F: (202) 482-5179 or (202) 273-0927
Contact: Ms. Brenda Ebeling, Director

EXPORT-IMPORT BANK OF THE UNITED STATES (EXIM)
811 Vermont Avenue, N.W.
Washington, D.C.  20571
Export Credit Insurance for one year or less
T: (202)566-8960  F: (202)377-7983

OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC)
1100 New York Avenue, N.W.
Washington, D.C. 20527
Insurance Department
T: (202)366-8593  F: (202)408-5142
Finance Department
T: (202)336-8472  F: (202)408-5142
Contact: Mr. Richard Greenberg

U.S. TRADE AND DEVELOPMENT AGENCY (TDA)
Regional Director for Latin America
Room 309, SA-16
Department of State
Washington, D.C.  20523-1602
T: (703)875-4357 F: (703)875-4009
Contact: Mr. Alberto Angulo or Mr. John Herrman


8.  OTHER ENTITIES TO CONSULT IN REFERENCE TO DOING BUSINESS IN COSTA 
RICA.

Trade Promotion Council Committee (TPCC)
1-800-USA-TRADE.

U.S. Department of Commerce
Desk Officer for Costa Rica, Room H3025
14th & Constitution Ave., N.W.
Washington, D.c. 20230
T: (202)482-5680 F: (202)482-4157

U.S. Department of State
Officer in Charge, Costa Rican Affairs
2201 C Street, N.W.
Washington, D.C.  20520
T: (202)647-4980  F: (202)647-2597

U.S. Department of Agriculture, Foreign Agricultural Service, Trade 
Assistance and Promotion Office
(202) 720-7420.

Embassy of Costa Rica
Commercial Attache
1825 Connecticut Ave., N.W., Suite 211
Washington, D.C.  20009
T: (202)234-2945  F: (202)265-4795
(The government of Costa Rica has consulate offices in the largest 
cities in the U.S.)

CINDE/Costa Rica Investment and Development
90 West Street, Suite 614
New York, NY  10006
T: (212)964-1774  F: (212)964-1969

CINDE/Costa Rica Investment and Development
1600 N.W. LeJune Road, Suite 303
Miami, Florida  33126
T: (305)871-1091  F: (305)871-0791
```

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