The project establishes that companies that import beans will do so as proportional percentage of the domestic purchases, without paying tariffs.
Marvin Barquero writes for La Nacion’s website: “This mechanism is allowed by the World Trade Organization (OMC, acronym in Spanish). However, it cannot be applied to countries that have valid free trade agreements like the United States and Central America. But it does limit companies who purchase from other big suppliers, especially China and Argentina.”
The Government sent a bill that would force local industries to buy national beans.
According to what Marvin Barquero reported in his article in Nacion.com, the bill sent by the Executive branch to the Costa Rican Legislative Assembly contains clauses that will protect local bean production.
The government eliminated duties on beans from July 18 to December 31 of this year, to avoid further raises on the price to the consumer.
The decision allows to import this bean, in its red and black variants, from any country with just a 1% duty tax. The regular tax for this product is 30%, and there had been a previous reduction of 5% in the shipment tax.
The country is to temporarily allow tax-free imports of beans until November in order to ensure supply.
Orlando Solórzano, Minister for Development, Industry and Commerce (MIFIC), commented that no percentage tax will be applied to bean imports.
The MIFIC minister added that the decree establishes that "imports of beans are free for any person, state institution or private company in order to ensure Nicaragua's supplies," reports Elsalvador.com.
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