13. Sector: Free Trade Zones
Subsector:
Industrial Classification:
Obligations Affected: Performance Requirements (Article 11.7)
Level of government: Central
Measures: Law No. 7210 - Free Zone Regime Law - Article 22. Executive Decree No. 34739-COMEX-H - Regulation to the Free Zone Regime Law - Article 71, Chapter 13.
Description: Investment
Companies under the Free Trade Zone Regime may introduce into the national customs territory up to 25 percent of their total sales. However, in the case of industries and service companies that export them, they may introduce into the national customs territory a maximum percentage of 50 percent.
A non-producing export trading company, established in the Free Zone Regime in Costa Rica, that simply manipulates, repackages or redistributes non-traditional merchandise and products for export or re-export, may not introduce into the national customs territory any percentage of its total sales.
14. Sector: Education Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4)
Level of government: Central
Measures: Executive Decree No. 36289-MEP - Regulations to the Law that Regulates Para-University Higher Education Institutions - Article 14.
Description: Cross-Border Trade in Services
The Dean of a public para-university institution must be Costa Rican.
15. Sector: News Agency Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 12.4) Local Presence (Article 12.5)
Level of government: Central
Measures: Executive Decree No. 32599 - Regulations of the College of Journalists of Costa Rica - Articles 3, 47 and 48.
Description: Cross-Border Trade in Services
Unless authorized, a foreign journalist may cover events in Costa Rica only if he/she is a resident of Costa Rica.
The Board of Directors of the College of Journalists may grant non-resident foreigners a special permit to cover events in Costa Rica for up to one year, extendable as long as they do not harm or oppose the interests of the members of the College of Journalists.
If the College of Journalists decides that an event of international importance will occur or has occurred in Costa Rica, the College of Journalists may grant a non- resident foreigner with appropriate professional credentials a temporary permit to cover such event for the foreign media that the journalist represents. Such permit will only be valid for up to one month after the event.
16. Sector: Tourist Marinas and Related Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Local Presence (Article 12.5) Market Access (Article 12.6)
Level of government: Central
Measures: Law No. 7744 - Law on Concession and Operation of Marinas and Tourist Docks - Articles 1, 12, and 21. Executive Decree No. 27030-TUR-MINAE-S-MOPT - Regulation to the Law of Concession and Operation of Tourist Marinas - Article 52.
Description: Investment and Cross-Border Trade in Services
In order to obtain concessions for the development of marinas or tourist berths, companies whose principal place of business is abroad must be established in Costa Rica.
Foreign nationals must appoint a representative with sufficient legal authority and permanent residence in Costa Rica.
All foreign flag vessels using the services offered by a marina shall enjoy a 2-year permanence permit in national waters and territory, extendable for equal periods. During their stay in Costa Rican waters and territory, foreign flag vessels and their crew may not provide water transportation services or fishing, diving or other activities related to sport and recreational tourism.
17. Sector: Supply of Consumable Liquids at Facilities
Subsector:
Industrial Classification:
Obligations Affected: Market Access (Article 12.6)
Level of government: Central
Measures: Law No. 10 - Liquor Sales Law - Articles 8, 11 and 16.
Description: Cross-Border Trade in Services
Itis at the discretion of the Municipalities to determine the number of liquor establishments that may be authorized in each of the areas under their jurisdiction. In no case may this number exceed the following proportion:
(a) in provincial capitals, one establishment selling foreign liquors and one establishment selling domestic liquors for every 300 inhabitants;
(b) in all other cities with more than 1,000 inhabitants, one establishment selling foreign liquor for every 500 inhabitants and one establishment selling domestic liquor for every 300 inhabitants;
(c) cities with less than 1,000 inhabitants, but more than 500, may have 2 establishments selling foreign liquors, and 2 establishments that sell domestic liquor; and
(d) any other city having 500 inhabitants or less, may have one establishment selling foreign liquor and one establishment selling foreign liquor and one establishment selling foreign liquor.
No establishment for the sale of liquor for consumption shall be allowed outside the perimeter of cities or where there is no permanent police authority.
At public auction, no person may acquire authorization to have more than one establishment selling foreign liquors and one establishment selling domestic liquors in the same city.
18. Sector: Retail and Wholesale Distribution - Crude Oil and Crude Oil Derivatives
Subsector:
Industrial Classification:
Obligations Affected: Market Access (Article 12.6)
Level of government: Central
Measures: Law No. 7356 - Law of the State Monopoly of Hydrocarbons Administered by Recope "Establishes a Monopoly in favor of the State for the Importation, Refining and Distribution of Petroleum, Fuels, Asphalts and Naphtha" - Articles 1, 2 and 3. Law No. 7593 - Public Services Regulatory Authority Law - Articles 5, 9 and 13. Executive Decree 36627-MINAET - Regulation for the Regulation of Fuel Transportation.
Description: Cross-Border Trade in Services
The import and wholesale distribution of crude oil and its derivatives, including fuels, asphalts and naphtha, to meet domestic demand, are a State monopoly.
Costa Rica reserves the right to limit the number of concessions or permits for the supply of hydrocarbon fuels - including petroleum derivatives, asphalts, gas and naphthas destined to supply the national demand in distribution plants and petroleum derivatives, asphalts, gas and naphthas destined to the final consumer - based on the demand for the service. Priority will be given to the concessionaires that are supplying the service.
19. Sector: Telecommunications Services (4)
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Local Presence (Article 12.5) Market Access (Article 12.6)
Level of government: Central
Measures: Political Constitution of the Republic of Costa Rica - Article 121, paragraph 14. Law No. 8642 - General Telecommunications Law - Articles 1, 5, 7, 10, 11, 12, 19, 20, 21, 22, 23, 24, 25, 26, 28 y 30. Executive Decree No. 34765-MINAET - Regulation to the General Telecommunications Law - Articles 2, 6, 7, 10, 21, 22, 33, 34, 35, 35, 37, 43, 45, 45 bis and 46. Law No. 8660 - Law for the Strengthening and Modernization of the Public Entities of the Telecommunications Sector - Articles 5, 7, 18 and 39. Law No.7789 - Law for the Transformation of Empresa de Servicios Publicos de Heredia ESPH - Articles 7 and 15.
Description: Investment and Cross-Border Trade in Services
In Costa Rica, wireless services may not definitively leave the State domain and may only be exploited by the public administration or by private parties, in accordance with the law or by means of a special concession granted for a limited period of time and under the conditions and stipulations established by law by the Legislative Assembly.
Concessions, authorizations and permits will be required to supply telecommunications services in Costa Rica. Economic needs tests are required to grant such concessions, authorizations and permits.
A special concession granted by the Legislative Assembly will be required to provide traditional basic telephone services.
The participation in the capital of companies incorporated or acquired by the Instituto Costarricense de Electricidad will be limited to 49 percent.
Empresa de Servicios Publicos de Heredia may establish strategic alliances with public or private persons, as long as the latter have at least 51 percent of Costa Rican capital.
20. Sector: Advertising, Audiovisual, Film, Radio, Television and other Entertainment Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Most-Favored-Nation Treatment (Articles 11.5 and 12.3) Performance Requirements (Article 11.7) Local Presence (Article 12.5) Market Access (Article 12.6)
Level of government: Central
Measures: Law No. 6220 - Law that Regulates Broadcasting Media and Advertising Agencies - Articles 3 and 4. Law No. 1758 - Radio and Television Law - Article 11. Law No. 4325 - Law on Advertising of Nationally Produced Artistic Programs - Article 1. Law No. 5812 - Law that Regulates Contracting and Taxation of Foreign Performing Artists - Article 3. Executive Decree No. 34765-MINAET - Regulations to the General Telecommunications Law - Articles 5, 127, 128 and 131.
Description: Investment and Cross-Border Trade in Services
Broadcasting media and advertising agencies may be operated by individuals or legal entities, in the form of personal or capital companies with nominative shares. Such companies must be registered in the Public Registry.
It is absolutely forbidden to constitute liens on the shares or quotas of a company owning any broadcasting media or advertising agency, in favor of corporations with shares in the company, bearer, or foreign individuals or legal entities.
The spots, advertisements or filmed commercials used in programs sponsored by the autonomous or semi- autonomous institutions of the State, the Government of the Republic and all entities that receive a subsidy from the State, must be of national production.
Broadcasters of commercial spots for film, radio and television must register with the Radio Department of the Ministry of Environment, Energy and Telecommunications. Foreign announcers must be residents in order to register with the Radio Department. Broadcasting of commercials in which the announcer is not registered as stipulated in the Regulations to the General Telecommunications Law will not be authorized.
Commercials that have been produced and edited in the country are considered national. Commercials coming from the Central American area with which there is reciprocity in the matter are also considered national.
Radio, television and film programming shall be governed by the following rules:
(a) if the advertisements consist of jingles recorded abroad, a certain sum shall be paid for each one broadcast;
(b) of the filmed commercials shown by each television station or movie theater each day, only 30 percent may be of foreign origin;
(c) the importation of commercial shorts outside the Central American area will pay a tax of 100 percent of their value;
(d) Commercial radio, film or television shorts made in any of the other Central American countries with which there is reciprocity in this matter shall be considered as national;
(e) the number of radio programs and radio soap operas recorded abroad may not exceed 50 percent of the total number broadcast by each radio station on a daily basis; and
(f) the number of programs filmed or recorded on videotape abroad may not exceed 60 percent of the total number of daily programs shown.
The person who hires or employs foreign artists must hire an equal number of national artists for the same show, unless the respective majority union expresses the impossibility of supplying them.
21. Sector: Water Transportation Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Articles 11.4 and 12.4) Local Presence (Article 12.5) Market Access (Article 12.6)
Level of government: Central
Measures: Law No. 7593 - Public Services Regulatory Authority Law - Articles 5, 9 and 13. Law No. 104 - Code of Commerce of 1853 - Book Ill Of Maritime Commerce - Articles 537 and 580. Law No. 12 - Ship Flagging Law - Articles 5, 41 and 43. Law No. 2220 - Cabotage Service Law of the Republic - Articles 5, 8, 9, 11 and 12. Executive Decree No. 66 - Regulation of the Cabotage Services Law of the Republic - Articles 10, 12, 15 and 16. Executive Decree No. 12568-T-S-H - Regulation of the Costa Rican Naval Registry - Articles 8, 10, 11, 12 and 12. 13. Executive Decree No. 23178-J-MOPT - Transfer of the National Vessel Registry to the Public Registry of Movable Property - Article 5.
Description: Investment and Cross-Border Trade in Services
Costa Rica reserves the right to limit the number of concessions for water transportation services based on the demand for this service. Priority will be given to those concessionaires that are providing the service.
Only Costa Rican nationals, national public entities, companies incorporated and domiciled in Costa Rica and representatives of shipping companies may register vessels in Costa Rica. Exceptions to this rule are foreigners or foreign companies wishing to register vessels under 50 tons for non-commercial use.
Any natural or juridical person based abroad who owns one or more foreign registered vessels located in Costa Rica, must appoint and maintain an agent or legal representative in Costa Rica, who will act as liaison with the official authorities in all matters related to the vessel.
Commercial and tourist cabotage from Costa Rican port to Costa Rican port shall be done exclusively in Costa Rican registered vessels.
Foreigners who wish to be captains of a vessel of Costa Rican registry and flag must provide a guarantee equivalent to at least half of the value of the vessel under their command.
At least 10 percent of the crew on Costa Rican-registered international traffic vessels docking in Costa Rican ports shall be Costa Rican nationals, provided that such trained personnel are available domestically.
22. Sector: Air Transportation Services
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Most-Favored-Nation Treatment (Article 11.5)
Level of government: Central
Measures: Law No. 5150 - General Civil Aviation Law. Executive Decree No. 3326-T - Regulations for the Granting of Operating Certificates. Executive Decree No. 4440-T - Regulations for the Operation of the Costa Rican Aeronautical Registry. Executive Decree No. 32420 - RAC-LPTA Costa Rican Aeronautical Regulations Aeronautical Technical Personnel Licenses. Executive Decree No. 31520-MS-MAG-MINAE-MOPT- MGPSP - Regulations for Agricultural Aviation Activities.
Description: Investment
Certificates for the supply of airworthiness services will be issued to foreign companies incorporated under foreign legislation, based on the principle of reciprocity.
Only Costa Rican individuals or legal entities may register in the National Aircraft Registry, aircraft used for remunerated aerial activities. Foreigners with legal residence in the country may also register aircraft used exclusively for non-commercial purposes.
In the absence of agreements or conventions, certificates for the supply of air transport international shall be issued on the basis of the principle of reciprocity.
At least 51 percent of the capital of companies wishing to obtain an operating certificate to develop agricultural aviation activities must be owned by Costa Ricans.
Annex I. Non-Conforming Measures. List of Guatemala
1. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4) Most-Favored-Nation Treatment (Article 11.5)
Level of government: Central
Measures: Article 3 and 20 of the Law of the Land Fund, Decree No. 24-99, of the Congress of the Republic of Guatemala. Article 4 of Resolution Point Number 32-2002 of the Directive Council of the Land Fund.
Description: Investment
Only Guatemalans of origin may be beneficiaries to access land in property in individual or organized form.
In the case of Mexico, this reserve applies only to the department of El Petén.
2. Sector: All Sectors
Subsector:
Industrial Classification:
Obligations Affected: National Treatment (Article 11.4)
Level of government: Central
Measures: Article 122 of the Political Constitution of the Republic of Guatemala.
Description: Investment
The State reserves the domain of a land strip of 3 kilometers along the oceans, counted from the upper tide line; of 200 meters around the shores of lakes; of 100 meters on each side of the banks of navigable rivers; of 50 meters around the sources and springs where the waters that supply the populations are born.
Exceptions to the aforementioned reservations:
(a) properties located in urban areas; and
(b) property on which there are rights registered in the Land Registry prior to March 1, 1956.