Canada–Costa Rica Free Trade Agreement (CCRFTA): Costa Rica Free Zone Regime
Memorandum D11-4-27

ISSN 2369-2391

Ottawa, May 7, 2020

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In brief

  1. This memorandum has been updated to reflect the Regulations Repealing the CCRFTA Non-entitlement to Preference Regulations effective as of .
  2. Although repealed, the CCRFTA Non-entitlement to Preference Regulations remain applicable to all corresponding goods imported from Costa Rica and accounted for, on or before . These regulations are in Appendix C.
  3. Please note that entitlement to the benefit of the General Preferential Tariff (GPT) was withdrawn in respect of all goods that originate in Costa Rica.

This memorandum contains the regulations and information for determining whether Canada-Costa Rica Free Trade Agreement (CCRFTA) originating goods imported from Costa Rica and accounted for, on or before have received the benefits of the Costa Rica Free Zone Regime, and whether such goods are entitled to the Costa Rica preferential tariff treatment.

Legislation

CCRFTA Non-entitlement to Preference Regulations (as reproduced in Appendix C)

Regulations Repealing the CCRFTA Non-entitlement to Preference Regulations

CCRFTA Rules of Origin Regulations

Customs Tariff

Canada-Costa Rica Free Trade Agreement Implementation Act

Guidelines and general information

Definitions

1. In this memorandum, any reference that is made to:

"Costa Rica Free Zone regime" is a system that has the effect of subsidizing companies on the condition of export of their goods.

"geographic area" means any area within Costa Rica where companies are provided with the benefits of the Costa Rica Free Zone regime including income tax exemptions and subsidies.

General

2. Effective , the CCRFTA Non-entitlement to Preference Regulations (as reproduced in Appendix C) is repealed by the Regulations Repealing the CCRFTA Non-entitlement to Preference Regulations. Accordingly, goods previously deemed non-qualifying under the CCRFTA Non-entitlement to Preference Regulations may now be deemed as qualifying under the CCRFTA, as the companies listed in Appendix A of this memorandum, no longer receive the benefits of the Costa Rica Free Zone regime.

3. The CCRFTA Non-entitlement to Preference Regulations nevertheless remain applicable to any Canada-Costa Rica Free Trade Agreement (CCRFTA) originating good imported from Costa Rica cited in Appendix B of this memorandum that has undergone operations in a geographic area listed in Appendix A of this memorandum, and accounted for, on or before .

Goods accounted for on or before

4. The CCRFTA Non-entitlement to Preference Regulations establishes that listed goods, which although originating in accordance with the CCRFTA Rules of Origin Regulations, are deemed not to originate and are, therefore, not entitled to the Costa Rica Tariff (CRT) rate of customs duty if they have undergone operations in a specified Costa Rica Free Zone.

5. Appendix A, List of geographic areas – companies, sets out the geographic areas (i.e. a list of companies) that prior to , received the benefits of the Costa Rica Free Zone regime and, thus, are not entitled to the CRT.

6. Where CCRFTA originating goods are classified under any of the tariff item numbers set out in Appendix B, and the goods have undergone operations in a geographic area as listed in Appendix A, such goods are not entitled to the CRT. In these instances, the Most-Favoured Nation (MFN) rate is applied.

7. Where originating goods cited in Appendix B have not undergone operations in a geographic area listed in Appendix A, such goods may be entitled to the CRT only if the goods originate in accordance with the CCRFTA Rules of Origin Regulations. Further information concerning the rules of origin can be found in Memorandum D11-5-3, Canada–Costa Rica Free Trade Agreement (CCRFTA) – Rules of Origin. Importers must be in possession of a valid CCRFTA Certificate of Origin (form B246) when claiming the CRT.

8. Importers who possess a Certificate of Origin must ensure that the goods they have imported have not undergone operations in a geographic area listed in Appendix A. The Certificate of Origin contains fields where exporters and/or producers in Costa Rica must indicate whether they have benefited from the Costa Rica Free Zone regime. Further information concerning the Certificate of Origin can be found in Memorandum D11-4-2, Proof of Origin of Imported Goods, and Memorandum D11-4-14, Certification of Origin under Free Trade Agreements.

9. Importers are encouraged to consult Appendix A and Appendix B in conjunction with the Certificate of Origin to ensure that their imported goods meet the CCRFTA Rules of Origin Regulations and are entitled to the CRT.

10. The date of accounting of the goods on Form B3-3, Canada Customs Coding Form, will be the date considered when determining the entitlement of the CRT for companies cited in Appendix A and the goods listed in Appendix B.

Goods accounted for on or after

11. Goods exported from Costa Rica and accounted for on or after may be entitled to the CRT only if the goods originate in accordance with the CCRFTA Rules of Origin Regulations. Further information concerning the rules of origin can be found in Memorandum D11-5-3, Canada–Costa Rica Free Trade Agreement (CCRFTA) – Rules of Origin.

12. Importers must be in possession of a valid CCRFTA Certificate of Origin (form B246) when claiming the CRT. Further information concerning the Certificate of Origin can be found in Memorandum D11-4-2, Proof of Origin of Imported Goods, and Memorandum D11-4-14, Certification of Origin under Free Trade Agreements.

Additional information

13. For more information, within Canada call the Border Information Service at 1-800-461-9999. From outside Canada call 204-983-3500 or 506-636-5064. Long distance charges will apply. Agents are available Monday to Friday (08:00 – 16:00 local time/except holidays). TTY is also available within Canada: 1-866-335-3237.

Appendix A - List of geographic areas – companies

Having consulted with the Minister of International Trade, the Minister of Public Safety and Emergency Preparedness specifies the following as geographic areas for purposes of subsections 16(2)(a)(ii) and 49.1(4) of the Customs Tariff.

Note: This list will be modified or revised, as required, as a result of ongoing consultations with the Global Affairs Canada.

Appendix B - List of goods for which the Costa Rica Tariff may be claimed

The benefits of the Costa Rica Tariff may be claimed for goods classified under the following tariff item numbers only if the goods are considered originating as per the CCRFTA Rules of Origin Regulations,and such goods are not produced wholly or partially within a geographic area specified in accordance with subsection 16(2.1) of the Customs Tariff and Appendix A.

Note: This list has been compiled from Schedules 2 and 3 of Bill C-32, Canada-Costa Rica Free Trade Agreement Implementation Act, an Act to implement the Free Trade Agreement between the Government of Canada and the Government of the Republic of Costa Rica (the Act). If there are any discrepancies between this list and those set out in the Act, the Act takes precedence.

Appendix C - CCRFTA Non-entitlement to Preference Regulations

The CCRFTA Non-entitlement to Preference Regulations remains applicable to any CCRFTA originating good imported from Costa Rica cited in Appendix B of this memorandum that has undergone operations in a geographic area listed in Appendix A of this memorandum, and accounted for, on or before . For this purpose, the repealed CCRFTA Non-entitlement to Preference Regulations is reproduced below.

CCRFTA Non-entitlement to Preference Regulations

[SOR/2002-398; as repealed by SOR/2019-291]

Interpretation

1. The following definitions apply in these regulations.

Costa Rica Free Zone means a geographic area within Costa Rica specified by the Minister of National Revenue in accordance with subsection 16(2.1) of the Customs Tariff.

listed goods means goods in relation to which "N", "0" or "P" is set out in the column entitled "Preferential Tariff' following the abbreviation "CRT" in the List of Tariff Provisions in the schedule to the Customs Tariff and goods of tariff item Nos. 3919.10.10, 3919.90.10, 3921.90.12, 3921.90.19, 3926.20.91, 3926.20.92, 3926.20.95 and 3926.90.50.

operations means the manipulation, processing, manufacture, production, repair or maintenance of goods.

Non-entitlement to preference

2. Listed goods that originate in the territory of a CCRFTA country in accordance with the CCRFTA Rules of Origin Regulations and that have undergone operations in a Costa Rica Free Zone are deemed not to originate in Costa Rica and are not entitled to the Costa Rica Tariff rate of customs duty.

Coming into force

3. These Regulations come into force on the day on which section 34 of the Canada-Costa Rica Free Trade Agreement Implementation Act, chapter 28 of the Statutes of Canada, 2001, comes into force. [2001, c. 28 in force on ]

References

Issuing office:
Trade and Anti-dumping Programs Directorate
Headquarters file:
 n/a
Legislative references:
Customs Tariff
Canada-Costa Rica Free Trade Agreement Implementation Act
CCRFTA Non-entitlement to Preference Regulations
Regulations Repealing the CCRFTA Non-entitlement to Preference Regulations
CCRFTA Rules of Origin Regulations
Other references:
D11-4-2, D11-4-14, D11-5-3
Form B3-3, Form B246
Canada-Costa Rica Free Trade Agreement
Superseded memorandum D:
D11-4-27 dated July 8, 2014
Date modified: