Costa Rica: Logistics Costs Could Increase

The decree that reduces the timeframe for foreign cargo transport in the country, from 6 to 3 months, could lead to an increase in logistics costs for exporters and importers.

Tuesday, April 25, 2017

The decree by the government that aimed to eliminate the unfair competition that Costa Rican carriers say was caused by permitting six month stays for transportation trucks from neighboring countries could solve the problem, but could come very close to causing others for the logistics and foreign trade sector.

The claim by entrepreneurs in the logistics sector is that the decree did not make a distinction between types of transport, maritime containers were within the decree, meaning that they can not stay on Costa Rican soil for more than three months.

Edgardo González, president of the National Chamber of Shipowners and Vapor Agents (NAVE by its initials in Spanish), explained to Elfinancierocr.com that "... the sector applies the logic that containers arrive in the country with cargo and they must wait to be filled with new goods before they return. On top of this is the order for shipping companies to have a robust inventory to accumulate equipment (containers) for special seasons."

"... 'Three months is not enough for these processes.  Therefore, we face the problem that if a container stays for more than three months on national soil it incurs taxes in the order of 28%, plus other additional costs, and before that happens we would prefer to remove the containers from the country, and that is where the shortage comes in and an increase in expenses for the shipping company and, consequently, for the exporter," said Gonzalez.

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