In Costa Rica, there are three main special regimes, these are legal mechanisms that governments implement to encourage foreign direct investment, exportation, development, and revitalization of the economy of the countries. In our country, the institution in charge of the administration of these regimes is the Foreign Trade Promoter (PROCOMER) which are currently in force: Free Zone, Improvement of Asset, and Return of Rights. In this article, we will be developing the Active Improvement Regime, its main benefits, who can be beneficiaries, and its types.

Manufacturing companies understood as those that transform raw materials or semi-processed goods into final products, have the possibility of operating under the Active Improvement Regime. This customs regime is a very important instrument to promote importation; allowing companies to receive the merchandise in the customs territory with a suspension of taxes and under surrender of guarantee.

Unlike the Free Zone Regime, the companies that apply in the Active Improvement Regime do not have to comply with requirements such as investment levels, minimum employment, or the need to settle within an industrial park.

Who can be a beneficiary of the Active Improvement Regime?

Any natural or legal person who submits the goods to a process of:

• Transformation
• Repair
• Reconstruction
• Incorporation of goods in sets, machinery, transport equipment, or more complex devices

It is important that the beneficiary definitively re-exports or imports the merchandise entered under this regime within the legal period of twelve months.

What is the benefit of the Active Improvement Regime?
Provides tax incentives for companies to be more competitive in the international market.

The Regime has two modalities:

1. 100% direct or indirect re-exportation: Companies must re-export all their production to other countries.
2. Direct or indirect re-exportation and local sale: Companies must pay the corresponding taxes on merchandise for sale in the country, either at the time of importation or local sale.

ERP Lawyers becomes an ally of your company with a team of expert lawyers in the field who will gladly accompany you. If you wish to expand this information and learn more about the Active Improvement Regime, do not hesitate to contact us by email at info@erplawyers.com.