Costa Rica significantly modified the Free Trade Zone regime through Executive Decree No. 41263-COMEX-H, which is effective September 10, 2018.

In Executive Decree No. 41263-COMEX-H (the Decree), Cost Rica modified the Free Trade Zone (FTZ)regime regulations to establish a new legal and operative framework for FTZ regime beneficiaries that provide logistic services (SEL companies).

SEL companies were initially regulated in 2010 through an amendment to Section 5 of the FTZ regulations.1 However, the amendment only set out the activities that could be carried out by SEL companies and authorized operations SEL companies may conduct.

The Decree establishes a comprehensive framework, providing legal certainty to these companies. Regulations include the operations SEL companies may conduct, facility requirements, obligations, customs valuation, re-export of merchandise, and commercial invoice equivalents. SEL companies also may sell up to 50% of their services in Costa Rica.

Through this Decree, logistic centers could ease trade for the owners of merchandise by moving goods to different customs territories safely and efficiently. This could allow Costa Rica to consolidate logistic centers in the Central America region.

The Decree is an important development for companies because many companies have wanted to offer logistic services, but the legislation did not provide much guidance.

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