Costa Rica–China Free Trade Agreement (FTA): 2025 Investor Guide for Market Entry & Tariff Savings
As corporate and trade counsel at AG Legal in San José, we help Chinese manufacturers, e-commerce brands, medical device makers, EV/energy firms and logistics operators enter Costa Rica with a bankable structure. This guide explains what the FTA offers, how to prove origin, which documents customs expects, and a step-by-step plan to invest and ship with confidence.
- What is the Costa Rica–China FTA?
- Tariff elimination: what qualifies and when
- Tariff benefits by product class
- Sector snapshots (Electronics, Medical, Automotive)
- Rules of origin & certificates
- Services, investment & dispute notes
- Customs playbook: from HS code to clearance
- Setting up in Costa Rica (entity, permits, banking)
- How to use the FTA (step by step)
- FAQs
- Talk to our lawyers
Author: AG Legal • Reviewed by: Trade, Customs & Corporate Team • Updated: Oct 14, 2025
What is the Costa Rica–China FTA?
The FTA is a comprehensive trade agreement between the People’s Republic of China and the Republic of Costa Rica, signed on April 8, 2010 and effective from August 1, 2011. It provides progressive tariff elimination on a wide range of goods, disciplines on customs procedures, and frameworks for services and investment facilitation. Many product lines reach zero duty if they meet origin rules.
Tariff elimination: what qualifies and when
Each side maintains a schedule with staging categories (immediate, 5–10 year phase-outs, and some excluded items, sometimes with tariff-rate quotas). Your exact rate depends on the HS code and the staging assigned in Annex 2 – Tariff Elimination. Many industrial inputs, electronics, machinery and selected agro-products see meaningful or complete duty relief if they originate under the FTA.
Tip: We check the staging line-by-line before you quote prices, and model landed cost versus MFN to lock in margins.
Tariff Benefits by Product Class (China → Costa Rica under the FTA)
| HS Chapter | Product Class | Typical FTA Benefit* | Notes for Chinese Exporters |
|---|---|---|---|
| 84 | Machinery, mechanical appliances, parts | 0% immediate or phased (5–10y), line-by-line | Verify exact subheading; many lines reach 0% if rules of origin are met. Keep BOM + technical certs where applicable. |
| 85 | Electrical machinery, electronics, components | 0% immediate/phased depending on line | Safety/EMC (TBT) common. Prepare Certificate of Origin and conformity evidence. |
| 90 | Instruments, medical devices, optics | 0% phased for several lines; some immediate | Strong cluster in Costa Rica. Check health/regulatory registrations. |
| 87 | Vehicles, parts & accessories | Mixed: 0% phased for many parts; some vehicles with longer phase-outs or exclusions | Confirm emissions/safety (TBT). Model import costs by subheading. |
| 39 | Plastics & articles | 0% phased, sensitive to origin rules (RVC/CTH) | Align input origin to meet RVC/CTH. Maintain supplier declarations. |
| 72–83 | Metals (steel, aluminum, tools, parts) | Broad 0% phased, with specific exceptions | Watch HS shift requirements. Certify composition as needed. |
| 28–38 | Chemicals, fertilizers, paints, cosmetics | Mix of 0% immediate & phased | Review sanitary/SPS permits and labeling. Origin may require RVC. |
| 50–63 | Textiles & apparel | 0% phased; some lines more sensitive | Specific origin rules (change in heading and/or RVC). Manage sourcing & manufacturing to qualify. |
| 01–24 | Agricultural & food products | Mixed: 0% phased, TRQ on sensitive items; some exclusions (F) | Check SPS and quotas. Example: frozen pork duty-free TRQ (250 MT/year); over-quota pays MFN. |
| 27 + cross-chapters | Energy products & technologies | Several lines with full or partial elimination | Cross-check with 84–85 for equipment. Confirm environmental/technical requirements. |
| Excluded (F) | Items excluded from elimination | Excluded (MFN applies); some with duty-free TRQ | Consider supply redesign, value-add in CR, or Free Zone programs. See General Notes & Commission decisions. |
*Typical benefit = overview by chapter. Exact duty depends on your 6–8 digit HS line, the rule of origin, and the staging schedule in Annex 2. For sensitive products, check TRQs and any Free Trade Commission updates.
Sector snapshots (Electronics, Medical devices, Automotive)
| Electronics (HS 84–85) | |||
|---|---|---|---|
| HS code | Product | Staging | Notes |
| 8471.30.xx | Laptops/portable ADP machines | A | Often 0% immediate if origin test met; check battery pack lines & accessories. |
| 8507.60.xx | Lithium-ion accumulators (EV/ESS, non-automotive) | B5 | Origin via RVC/CTH; TBT and DG transport rules. |
| 8504.40.xx | Static converters (inverters/chargers) | A | EMC/safety conformity may apply. |
| 8528.72.xx | Monitors/projectors (non-TV) | B5 | Screen tech & size impact staging. |
| 8541.40.xx | Photosensitive semiconductor devices; solar cells | B10 | Several lines phase to 0% over 10 years. |
| Medical devices (HS 90) | |||
|---|---|---|---|
| HS code | Product | Staging | Notes |
| 9018.39.xx | Medical needles & catheters | A | Often 0% immediate; maintain origin docs and sanitary registrations. |
| 9021.10.xx | Orthopedic or fracture appliances | B5 | Ensure BOM supports CTH/RVC; quality systems. |
| 9018.90.xx | Electro-medical instruments & parts | A | Power specs & EMC may trigger TBT checks. |
| 9027.80.xx | Instruments for physical/chemical analysis | B10 | Precision instruments often have longer phase-outs. |
| Automotive (HS 87) | |||
|---|---|---|---|
| HS code | Product | Staging | Notes |
| 8708.30.xx | Brakes & parts | B5 | Frequent 5-year phase-outs; safety/TBT & materials documentation. |
| 8708.95.xx | Airbags & parts | B10 | Strict safety requirements; robust origin documentation. |
| 8501.31.xx | Electric motors (EV traction ≤750W) | A | Some subchapters achieve immediate 0%. |
| 8703.80.xx | EVs & hybrid vehicles | B10 / F | Complete vehicles may face long phase-outs or exclusions. |
| 8708.40.xx | Gearboxes & parts | B5 | Good CTH candidates; coordinate supplier declarations. |
Rules of origin & certificates
- Origin tests: Generally wholly obtained or substantial transformation based on HS shift and/or regional value content.
- Certificate of Origin: Use the treaty’s official format; typically valid up to one year from issuance.
- Record-keeping & verification: Maintain costed BOMs, production records and supplier declarations; customs may verify retroactively.
Why it matters: A 0% rate only applies if you prove origin. We align suppliers, BOMs and documentation so your preference survives audits.
Services, investment & dispute notes
Beyond goods, the FTA includes commitments on trade in services and institutional mechanisms (a Free Trade Commission, committees, and customs cooperation). The treaty also aligns with protections under the separate China–Costa Rica investment agreement (2007). In practice, Costa Rica offers stable rule-of-law courts and predictable registries for corporate setup, real estate and IP.
Customs playbook: from HS code to clearance
- Classify correctly: Confirm the HS 6–8 digits and match to the FTA schedule (staging category).
- Plan origin: Validate transformation rules and regional value content; close gaps with sourcing or light processing if needed.
- Paperwork: Commercial invoice, packing list, Certificate of Origin, and any SPS/TBT permits.
- File & claim preference: Declare FTA preference on entry. Maintain records for post-clearance verification.
- Quality control: Keep supplier affidavits synchronized with annual HS updates and product refreshes.
Setting up in Costa Rica (entity, permits, banking)
Most investors choose an S.R.L. or S.A. We establish the company legally and provide start-up support through our BPO (Business Process Outsourcing) in accounting, administration, and everything else necessary for a successful launch. In addition, we draft bylaws for banking and compliance, register beneficial owners (RTBF), and secure municipal and sector permits as needed. If you manufacture or provide services for export, the free-zone regime may offer additional tax incentives—structured alongside FTA benefits and origin planning.
How to use the FTA (step by step)
- Confirm HS & staging: Identify exact tariff line and whether it’s immediate or phased.
- Design for origin: Map rules to your BOM; adjust sourcing or processing to qualify.
- Set documentation flow: Determine the issuing authority for Certificates of Origin and implement record-keeping (5+ years).
- Price with preference: Quote landed cost under FTA versus MFN; lock in contracts with compliance clauses.
- Ship & monitor: Claim preference at import; prepare for any verification requests.
- Scale locally: Establish entity, banking and—if relevant—free-zone operations for regional distribution.
Frequently asked questions
- When did the FTA enter into force?
- August 1, 2011. It was signed on April 8, 2010 in Beijing.
- What share of goods can reach zero duty?
- Most goods trade benefits from duty-free access on a staged basis, subject to origin compliance.
- If my product is excluded, can I still benefit?
- Some excluded items may have tariff-rate quotas or alternative routes (supply re-engineering, value-add in Costa Rica, or free-zone programs).
The list provided in this article is not a complete list of products, so each case is analyzed according to the customer’s needs. - Does the FTA include services and investment provisions?
- Yes—there are services commitments and institutional mechanisms; investment protections are also grounded in a 2007 agreement referenced in the FTA.
- Fastest way to confirm eligibility?
- We run a 48-hour HS/origin screen with landed-cost modeling and a draft Certificate-of-Origin workflow so your first shipment is audit-ready.
Talk to our trade & corporate lawyers
We’ll classify your products, confirm origin, and set up your Costa Rican entity and banking so you enjoy FTA tariffs from the first shipment.
This article is informational and not legal or tax advice. Confirm current schedules and documentation with your attorney and customs broker.