Basic information
Outline of the system
In acceding to the GATT in 1990, Costa Rica undertook to eliminate all existing import licensing requirements within a period not exceeding four years. This commitment was completely fulfilled by the end of 1994 with the entry into force of Law No. 7473 on the Implementation of the Uruguay Round Agreements, of 20 December 1994. Article 1 of the Law abolishes existing licensing requirements and establishes the commitment in general to eliminate any similar procedure requiring permits, prior authorization or approval for the importation of goods.
Accordingly, all import licensing requirements of a commercial nature were implemented.
In conformity with its commitments under the Uruguay Round Agreement on Agriculture, Costa Rica has established tariff quotas for certain agricultural commodities. Unlike those that existed prior to December 1994, these quotas are not administered through import licences but are allocated through a market mechanism that entails an administrative procedure.
Product coverage
The licensing system currently in force in Costa Rica is based on the General Regulations on the Allocation of Import Tariff Quotas, Executive Decree No. 39938-COMEX of 29 September 2016, published in Official Journal (La Gaceta) No. 192 of 6 October 2016.
These Regulations govern the allocation and administration of the volumes of imports under the tariff quotas granted by Costa Rica in accordance with its multilateral commitments in the World Trade Organization (WTO) and under the free trade agreements in force. (Except for quotas for rice in the husk (United States), black beans (China), paper articles (Panama) and animal feed (Colombia). Import quotas covered by the Central America – European Union Association Agreement are also excluded from their scope).
The products eligible for quotas accorded by Costa Rica in the WTO framework are detailed in Schedule LXXXV – Costa Rica (Part I – Most-Favoured-Nation Tariff, Section I – Agricultural Products, Section I-B Tariff Quotas). However, the only products that have been accorded quotas from the year 2000 to date are those listed below: [Please see Products]
Products subject to bound tariff quotas not included in the above list are those for which quotas were not activated during the reporting period because the most-favoured-nation (MFN) import tariff remained at a level equal to, or lower than, the tariff established in Costa Rica's Schedule for in quota imports, that is, they enjoyed better access conditions than those established in Costa Rica's Schedule LXXXV.
Nature of licensing
Automatic
If Automatic, administrative purpose
Products under restriction as to the quantity or value of imports
The licensing requirement applies to products subject to import quotas accorded by Costa Rica in accordance with its multilateral commitments in the World Trade Organization (WTO) and under the free trade agreements now in place. The purpose of the mechanism for the administration of import quotas is to ensure strict compliance with Costa Rica's international obligations as well as full enjoyment of the rights secured as a result of the Uruguay Round of Multilateral Trade Negotiations. This is done by establishing clear and efficient rules to ensure that maximum use is made of the quotas, on the basis of the principles of transparency and non-discrimination.
Questions for products under restriction as to the quantity or value of imports
Please see answers 6.1-6.11
The system applies to products originating from which country?
The preferential tariffs applied to import quotas in the WTO framework are accorded for products originating from any WTO Member. However, the countries from which goods have most commonly been imported under these quotas are the United States, Denmark and France. Import quotas are also granted under the existing free trade agreements with Canada, Panama, Peru and Colombia.
Expected duration of licensing procedure
Pursuant to the General Regulations on the Distribution and Allocation of Import Tariff Quotas, a notice is prepared detailing the import quotas for the following year. The notice is published during the first week of December prior to the year of allocation. From the date that the notice is published, any natural or legal person domiciled in Costa Rica may submit quota applications over a period of time not exceeding fifteen working days, counted from the first working day following publication. Once the period designated for the receipt of applications has expired, COMEX takes the first thirty working days of the year following publication of the notice to distribute and allocate the quotas among interested parties whose applications comply with the criteria laid down in the regulations. This is to guarantee that the principle of due process is satisfied, given that it is imperative to have all the necessary information in order to be able to carry out the allocation.
Legal requirements
Is the licensing statutorily required?
The Executive has issued regulations instituting the import licensing procedure for the purpose of administering the import quotas granted under the WTO Agreements and the free trade agreements signed by Costa Rica.
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
Costa Rican legislation does not leave the designation of products to be covered by the licensing procedure to administrative discretion. The products that require licensing are those subject to import tariff quotas accorded by Costa Rica in accordance with its multilateral commitments in the WTO and under the free trade agreements in force.
Is it possible for the government to abolish the system without legislative approval?
The Executive is empowered to abolish the system without legislative approval since the system is governed by orders issued by it through executive decrees. The legal basis for the administration of quotas is currently provided by the General Regulations on the Allocation of Import Tariff Quotas, Executive Decree No. 39938-COMEX of 29 September 2016, published in Official Journal (La Gaceta) No. 192 of 6 October 2016.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
Under the restrictive licensing system, which is the only licensing system in effect in Costa Rica, any natural person or legal entity domiciled in Costa Rica may apply to participate in the distribution of import tariff quotas made available by COMEX in its notices.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Ministerio de Comercio Exterior de Costa Rica
Address
Dirección de Aplicación de Acuerdos Comerciales Internacionales
Telephone
(506) 299-4939 / (506) 299-4700
Fax
(506) 257-2189
Website
The regulations, application form and other relevant documentation are available on the Ministry of Foreign Trade's web site, at:
http://www.comex.go.cr/acuerdos/contingentes/importacion/default.htm
Contact officer
Leonor Obando
Submission of an application
Administrative body(ies) for submission of an application
Dirección de Aplicación de Acuerdos Comerciales Internacionales
Ministerio de Comercio Exterior de Costa Rica
Tel: (506) 299-4939 / (506) 299-4700
Fax: (506) 257-2189
Web site: www.comex.go.cr
Email: lobando@comex.go.cr; pep@comex.go.cr
Documentation requirements
What information is required in applications?
The following information must be provided in the application
(The quota application form is available at: http://www.comex.go.cr/media/6377/formula-contingentes_firmamanual-2018.pdf):
i. whether the allocation is regular or extraordinary;
ii. the applicant’s full name or company name;
iii. the applicant’s official identity document number;
iv. for legal persons, the full name of the legal representative or agent and their identity document number;
v. description of the product and the corresponding tariff heading, and the trade instrument under which the quota is accorded;
vi. the import volume requested for each quota and whether the applicant is new or historical;
vii. an email address, to act as the official means of receiving communications for all purposes.
What documents is the importer required to supply with the application?
The following documents must also be provided:
a. certificate of legal status issued by a Notary Public or the National Registry, indicating the number of the legal identity document;
b. special power of attorney if the application is made by a person other than the applicant, or for legal persons the legal representative, expressly stating that they are empowered to make the application on the applicant’s behalf;
c. certificate issued by a Notary Public stating the nature and ownership of shares in the applicant company or its partners, as appropriate;
d. certificate issued by a Notary Public or the National Registry, containing details of the persons responsible for the company's legal representation and its board of directors; and
e. for new applicants, a simple copy of the commercial invoice (containing the exporter’s details) and the bill of lading.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Costa Rica does not apply import licences in cases where there is no quantitative limit on the importation of a product.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
Costa Rica does not apply import licences in cases where there is no quantitative limit on the importation of a product.
Issuing the license
Can a licence be granted immediately on request?
Costa Rica does not apply import licences in cases where there is no quantitative limit on the importation of a product.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
Costa Rica does not apply import licences in cases where there is no quantitative limit on the importation of a product.
Which administrative body is responsible for approving application of licences?
Costa Rica does not apply import licences in cases where there is no quantitative limit on the importation of a product.
Must the applications be passed on to other organs for visa, note or approval?
Costa Rica does not apply import licences in cases where there is no quantitative limit on the importation of a product.
Are there any other conditions attached to the issue of a licence?
There are no conditions attached to the issuing of licences other than those laid down in the Regulations.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There are no licensing fees or administrative charges.
What is the amount of the fee or charge?
The only payment involved is for the legal stamps required for some documents in the application to participate in the quota allocation.
Is there any deposit or advance payment required associated with the issue of licences?
The issued of a licence is not subject to any deposit.
Amount or rate?
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
An application for a licence may be refused if it is incomplete, submitted in an untimely fashion or contains errors or omissions as laid out in the Regulations, namely:
i. discrepancies between the import volumes declared by the applicant and those officially communicated to COMEX by the Directorate-General of Customs (hereinafter the “DGA”), which are not justified, duly documented or supported by official documents;
ii. the supply of materially false information in sworn statements or the documents submitted in support of the application; and
iii. failure to comply with any other requirement set forth in Article 6 of the Regulations or failure to remedy such non-compliance.
Are the reasons for any refusal given to applicants?
Once the documentation has been examined, the allocation is made or the decision to reject the application is issued and the applicant is notified accordingly via the channels indicated by the latter.
Have applicants a right of appeal in the event of refusal to issue a licence?
As it is a final decision by the highest authority, the applicant may file an application for review within two months of the decision being notified, as provided for in the General Public Administration Law (Law No. 6227 of 2 May 1978) and the Law Regulating Administrative Litigation (Law No. 3667 of 12 March 1966).
If so, to what bodies and under what procedures?
All the information submitted by the interested parties is subject to verification by COMEX. If the examination of an application reveals an error or omission that could lead to its disqualification, the applicant is duly notified and given a period of ten working days as from the first working day following notification to make the corrections or submit the documents relating to the possible errors or omissions identified.
The settlement of the application for review signals that all administrative remedies have been exhausted, so that any applicant that deems it appropriate to pursue a claim further must turn to judicial channels and bring an action against the State in the administrative courts.
Importation
Are there any limitations as to the period of year during which importation may be made?
Costa Rica does not apply import licences in cases where there is no quantitative limit on the importation of a product.
What documents are required upon actual importation?
A physical licence is not required at the time of importation since, as stated in point II, each importer is supplied with a digital certificate for each quota for use by the beneficiary until the allocated quantity is exhausted.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no prior administrative formalities apart from the import licensing procedure described in the above replies and any sanitary and phytosanitary requirements.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
The validity of a licence begins on 1 January of the year for which the quota is allocated, or from notification of the resolution governing the quota allocation, and runs until 31 December of each year. The quota volumes are available for that period only and may not be extended except as provided for in the Regulations in the event of acts of God, force majeure or acts or omissions on the part of the public authorities that definitively prevent the quota-holder from using the quotas.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
Under Article 14 of the Regulations, an importer that has used less than 95% of the specifically assigned quota will be entitled, in the regular allocation for the year immediately following, to an amount no greater than the volume actually imported under the quota in the preceding year. If for two consecutive years an importer uses less than 95% of the assigned quota during the periods stated on the certificates issued, that importer will not be eligible for an allocation during the third year and will be treated as a new applicant with no documented history for the subsequent allocation. For extraordinary allocations (portions of quota remaining) at least 50% of the allocated quota must be used.
A new applicant that uses less than 50% of the allocated quota will not be eligible for an allocation during the following period. Moreover, an applicant that returns more than 50% of the allocation during two consecutive periods will not be eligible in the following period for an allocation greater than the amount actually imported in the immediately preceding calendar year, in the case of an historical applicant, or will not be eligible for a quota allocation in the case of a new applicant.
Article 11 of the Regulations establishes a mechanism whereby unused portions may be returned by beneficiaries that do not think that they will exhaust the quota to which they are entitled. In such a case, a note must be sent to COMEX by 30 June of the corresponding calendar year, indicating the volume that will not be used so that that volume can be made available to other potentially interested candidates in the special notice that is published on the last working day of July of each year. A beneficiary that does not exhaust the entire assigned quota but makes use of this mechanism will face no restrictions on subsequent participation in the allocation process.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
The certificates are personal in nature. They do not constitute a security. The rights vested in them may not be endorsed, assigned, or transferred in any other way.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
In Costa Rica, the banking authorities immediately provide the foreign exchange required to pay for goods to be imported.
Is a licence required as a condition to obtaining foreign exchange?
There is no need to be in possession of an import licence to obtain foreign exchange.
Is foreign exchange always available to cover licences issued?
There have been no problems of foreign exchange shortage so far, nor are there any special formalities for obtaining foreign exchange.
What formalities must be fulfilled for obtaining the foreign exchange?
There have been no problems of foreign exchange shortage so far, nor are there any special formalities for obtaining foreign exchange.
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Import quotas established in accordance with WTO commitments as well as those negotiated under Costa Rica's free trade agreements are allocated and distributed on the basis of the General Regulations on the Allocation of Import Tariff Quotas (hereinafter "the Regulations"). Further information on the regulations in force, forms and requirements, is available at http://www.comex.go.cr/contingentes.
As stipulated in the Regulations, a notice inviting historical applicants to participate in the allocation of the following year’s quotas is published during the first week of October. The notice is published in the Official Journal, La Gaceta, and a national newspaper, and the web page of the Ministry of Foreign Trade (COMEX) publishes the full details of: (i) the quotas available for the year in question, (ii) the size of each quota, (iii) the tariff heading and the product description, (iv) the countries of origin permitted, and (v) the prerequisites for participating in the allocation.
From the first working day of January each year the volumes available for that year are made available to new applicants. The web page of COMEX sets out the details of the available products and volumes, and the requirements to be met.
Once the allocation process has been carried out on the basis of criteria laid down in the Regulations for each of the subprocesses listed, each applicant is notified and the corresponding resolution is published on the COMEX website. The resolution states the amount assigned to each of the selected participants for each of the available quotas. The distribution takes place among those candidates whose applications were in conformity with the relevant stipulations.
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
The size of the quotas accorded under trade agreements is negotiated for each agreement and used for one year. In conformity with Article 4 of the Regulations, the Ministry of Foreign Trade of Costa Rica (COMEX) is the authority responsible for the administration of import quotas. For each applicant and allocated quota, COMEX authorizes a digital certificate in the TICA (Customs Control Information Technology) system, stating the quota volume allocated to that applicant for the year in question. The certificate runs until no later than 31 December of each year, and is to be used each time an import is made until the allocated quota is exhausted. Once the quota is exhausted or the closing date is reached, the tariff benefit expires.
The duration of the quotas may be extended in the event of acts of God, force majeure or acts or omissions on the part of the public authorities that definitively prevent the quota-holder from using the quotas, as provided for in Article 4 referred to above.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
The system of import tariff quotas is open to all parties interested in participating that fulfil the relevant prerequisites under the Regulations. There is no preference whatsoever in respect of any type of product for domestic producers of like goods.
The licences are granted exclusively for importing the designated products. In no circumstance may unused portions of any year's assigned quotas be added to quotas for a succeeding period.
The names of the importers that have been allocated shares of the quotas are duly published in Costa Rica's Official Journal (La Gaceta) and in a national newspaper. The information is therefore public. There has never been any direct notification to governments or export promotion bodies of exporting countries concerning the allocation of quotas. However, should an institution from an exporting country so request, there is nothing to prevent it from receiving such information.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Historical applicants have 15 working days from the publication of the notice in the Official Journal to submit applications. For new applicants the period for the receipt of applications opens on the first working day of January each year and remains open until the available amounts are exhausted.
What are the minimum and maximum lengths of time for processing applications?
Once the period for the receipt of applications has expired, COMEX has the first ten working days of the December following publication of the notice to distribute and allocate the quotas among historical applicants whose applications meet the criteria laid down in the Regulations. This is to guarantee application of the principle of due process, as it is indispensable to have all the required information in order to be able to make the allocation. An application for the quotas available to new applicants must receive a response within no more than ten working days following its receipt.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
As noted in point V, the allocation is made during the first ten working days of December. Therefore, the importer has approximately 10-15 days prior to being able to begin to use the allocation (1 January of the year following the one in which the notice was published).
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The administration of import quotas falls within the exclusive competence of COMEX. Within the Ministry's organizational structure, the Directorate-General of Foreign Trade (DGCE) is responsible, in collaboration with the Legal Advice Department, for reviewing applications and making the allocation in conformity with the Regulations.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
The basis on which the quotas are allocated derives from Articles 9 and 10 of the Regulations, which stipulate that 80% of the total annual amount for each quota will be divided among applicants with a documented history, while the remaining 20% will go to new applicants. For historical applicants, if the sum of all applications is lower than the amount available, each applicant will be assigned the amount requested; if the sum is greater than the amount available, that amount will be distributed proportionally based on in-quota imports in the reference year. For new applicants, the allocation will be made according to the daily order in which applications are submitted, until the available amounts are exhausted. If on the same day the sum of all applications is lower than the available amount, each applicant will be assigned the amount requested; if the sum is greater than the amount available, that amount will be distributed proportionally based on the amount requested.
As specified in the articles of the Regulations referred to, under no circumstances will COMEX assign an applicant a quota volume in excess of that requested.
The only conditions acceptable for the award of licences are those prescribed in the Regulations. There are no exceptions or derogations from the regulatory procedure. Unused portions of quota remaining after the initial allocation will be made available under the above mentioned resolution and will be distributed according to the daily order in which applications are submitted.
Applications are examined in order of receipt.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Costa Rica does not issue import licences in the case of bilateral quotas or export restraint arrangements in which the exporting country issues an export permit for its products. Neither are export permits issued for products exported under another country's tariff quota. Instead, the available share is allocated in cases expressly foreseen in domestic legislation, as for example the allocation of the share of cheese exports to the United States, and the export quotas covered by the Association Agreement between Central America and the European Union.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
No export permits are required from exporting countries.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
There are no products for which licences are granted only on condition that they are exported and not sold in the domestic market.