With the changes in the Manual of Procedures for the Inspection of Vehicles in force since November 6, the used units that are imported into Costa Rica and that have been declared in total loss or taken out of circulation in their country of origin, will not enter.
The importation is prohibited for registration of used vehicles established in Article 5 of the Transit Law such as, total loss, removed from circulation in their country of origin, unauthorized structural joints, altered odometers or right-hand drive, that have been declared in total loss in their country of origin or that do not comply with certain parameters that protect the final beneficiary as purchaser of the same in our country, explained the Ministry of Finance.
With the tax benefits granted to the import of electric cars, the number of units entering Costa Rica went from 40 in 2017 to 350 in 2018.
Last year, the Law of Incentives and Promotion for Electric Transportation came into force, which grants fiscal benefits to the import of electric cars, such as the exoneration of between 50% and 100% for sales, consumption and customs taxes, according to the import value of each car.
Arguing that the objective is to ensure that used cars into Costa Rica are in optimal condition, the new Customs authorities are tightening controls on imported units.
Importers of used vehicles in Costa Rica report that since the new General Director of Customs took office in January this year, is promoting a new guideline that generates uncertainty in the sector.
In Costa Rica, the government approved a decree that exonerates from the payment of the selective consumption tax to second-hand electric cars that are 5 or less years in service.
To encourage the use of electric vehicles in the country, the Alvarado administration signed the Executive Decree 41426-H-MINAE-MOPT, which grants a fiscal benefit to second-hand electric vehicles whose antiquity is equal to or less than 5 years from the year of its model.
From January to June of this year 35,157 new and used vehicles came into the country, registering a fall of 17% compared to the first half of 2017.
According to figures from the Ministry of Finance, between the first half of this year and the same period in 2017, the number of new vehicles imported into the country went down by 14%, going from 28,203 units to 24,395.
Entrepreneurs in the sector have stated that the phenomenon affects Costa Rica exclusively, since at the global level prices of automobile sales are maintaining an upward trajectory.
According to statistics from the Ministry of Finance in Costa Rica, 5,835 new and used units came into the country in the first five months of the year, which represents a 16% drop compared to the same period in 2017.
In the first five months of the year nearly 36 thousand vehicles came into the country, 26% more than in the same period in 2015 and 24% more motorcycles.
Of the 35,690 vehicles that entered the country between January and May 2016, 72% were new units, and the rest were used.In the same period, the country imported 32 thousand new motorcycles.
During 2013 the import of used vehicles in Costa Rica declined by 45%, the biggest drop since the 2009 crisis.
Importing used cars has ceased to be a business in Costa Rica. Last year the entry of used vehicles into the country declined by 45%, the strongest decline since the 2009 crisis.
Credit facilities provided by banks and the "new rules for the import sector in relation to the tax value of the units, odometers (mileage meter), total losses and new security devices have all affected sales."
Sellers of used cars in Costa Rica believe there is discrimination in the way the Ministry of Finance estimates import taxes on cars.
According to Jose Carballo, president of the Costa Rican Automotive Chamber, the industry complains that 52% is charged for new vehicles, while used cars which are over six years old are charged 79%.
"The tax burden is calculated using a ranking system, explained the Director of Taxation, Carlos Vargas, this means that vehicles from zero to three years old pay 52.29%, four to five years 63.91% and six years or more 79.03%", reported Nacion.com.
Facilities for granting loans for new cars is encouraging the market for new cars and reducing the one for imported used ones.
From January to September 2012 imports of new cars in Costa Rica grew by 29% compared to the same period last year. At the same time, the number of imported cars fell by 7%.
An article in Nacion.com reports that according to information from the Ministry of Finance, between January and September of this year 24,269 new cars were imported by agencies, almost 90 per day, on average. While the number of used cars admitted was 20,296, an average of 75 per day. This data only includes cars (and excludes vehicles for transporting goods).
With a 50% increase in the import of new units in the first quarter of 2012, a change has been seen in the traditional tendency of the country buying mostly used vehicles.
In the first 3 months of the year 9,272 new cars came into the country, 50% more than in the same period in 2011, which represents a turnaround in vehicle imports, according to statistics from the Ministry of Finance.