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.