Costa Rica plays an
active role in the negotiation of the Free Trade Area of the Americas (FTAA),
a hemispheric agreement that is targeted for implementation by 2005. It is a
founding member of the World Trade Organization. No significant trade barriers
affect the entry of most goods and services into Costa Rica.
Tariffs:
Costa Rica’s
shift from an import-substitution to an export-oriented model has helped cut
average nominal tariff protection. Costa Rica continues to unify and lower its
tariffs in compliance with its commitments to its Central American neighbors
and its World Trade Organization obligations. The tariff binding for 2001 is
48 percent on most goods.
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Non-Tariff Barriers: The Government of Costa Rica agreed Taxes: Internal taxes do not discriminate between domestic Foreign Investment: The country is firmly committed to Free Trade Zones: Eight Free Trade Zones (FTZs) operate Business Etiquette: Business in Costa Rica, as in other
to eliminate all import quotas in the Uruguay Round negotiations. Costa Rican
customs procedures are complex and bureaucratic, although they have improved
somewhat since the passage of the 1995 General Customs Law.
and foreign goods. A ten per cent sales tax affects virtually all goods and
services. A selective consumption tax ranging from five to 75 per cent applies
apply to about half of all products imported.
industrialization and offers incentives to attract investment. Costa Rica supports
the Enterprise for the Americas Initiative (EAI) and is exploring bilateral
trade talks on foreign investment with the United States and Mexico. There are
no significant barriers to foreign investment in Costa Rica.
in Costa Rica, six of which are privately managed. More than 200 companies employ
31,000 workers in the FTZs; exports totaled almost U.S.$ 3.6 billion in 1999.
Trade Finance: Costa Rican public and private banks provide a full range
of trade financing services. However, the small size of the banking sector and
relatively high real lending rates provide a significant advantage to those
with offshore sources of credit. Bank letters of credit are strongly recommended
for Costa Rica, especially if the business relationship between the U.S. exporter
and the local importer is still developing.
Latin American countries, depends heavily on the establishment of personal relationships.
The Costa Rican business community places great importance on personal contacts
with foreign suppliers.
Marketing and Selling Factors:
General: Marketing in Costa Rica is similar to marketing
in the U.S. Large shopping centers and malls are rapidly becoming the norm,
as are franchise outlets. The concept of customer service is very important
in Costa Rica.
Sales Representatives: Although it is possible to export
directly to Costa Rica, U.S. firms should try to find a local representative
and/or establish a local sales office.
E-Commerce: E-commerce
is a small, growing sales channel, but is constrained by Costa Rica’s
telecommunications infrastructure, lack of legislation and inefficient local
delivery service options.
Product Labeling and Marking: There are no general requirements
in Costa Rica for marking the origin of general merchandise.
Standards: No
"system
of standards"
has been implemented in Costa Rica because of a lack of adequate laboratory
equipment and funding.
Patents/Trademarks/Copyrights: General: Costa Rica is a signatory of all major international Patents: Costa Rica ratified the Paris Convention for the
agreements and conventions on trademarks, copyrights, and patent protection.
Protection of Industrial Property in 1995, although patent law remained deficient
in several key areas.
Trademarks: Trademarks
are renewable after a 15-year period. Counterfeiting of well-known trademarks
is widespread. Copyright: Costa Rican copyright law is generally adequate,
but not uniformly enforced.
