Under the Canada-Costa Rica Free Trade Agreement (CCRFTA) goods manufactured in Costa Rica free trade zones were not admissible to the full benefits of the agreement’s preferential tariff when imported into Canada.
They would only become admissible on the condition that Costa Rica eliminate all business income tax exemptions and other export subsidies which applied within these zones.
The Government of Costa Rica informed Canada in April 2018 that it had eliminated these tax exemptions and export subsidies. After review by Canadian officials, Canada is satisfied that Costa Rica now meets the conditions set out in the free trade agreement for entitlement to preferential tariffs.
As such, those goods are now entitled to benefit from preferential tariff treatment under the CCRFTA. This pertains to goods in staging categories A1, B, C and D, under the CCRFTA, which includes apparel, textiles, and tire products. The rate of duty under the Customs Tariff is now “Free” for all of these goods.
Link: Customs Notice 19-16 Amendment to the Departmental Consolidation of the Customs Tariff