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.