Sign up for tax alert emails    GTNU homepage    Tax newsroom    Email document    Print document    Download document

September 5, 2019

Costa Rica publishes resolution on including royalties and license fees in price actually paid on imports

Costa Rica’s General Customs Directorate and the National Customs Valuation and Verification Body published a resolution, which regulates how to include royalties and license fees in the price actually paid on or payable for imports. The resolution applies both to cases in which the importer knows the amount of such fees and royalties and cases in which the importer does not know those amounts. It also sets forth the special procedure to be applied in the immediate control (i.e., compliance measures applied by Customs).

Importer knows total amount of royalties and license fees

If the importer knows the total amount of the royalties and license fees, the resolution requires the importer to declare this amount in the Single Customs Declaration (SCD) by including it in the total value of the goods, as established in Articles 1 and 8.1.c of the Customs Valuation Agreement of the World Trade Organization.

Article 8.1.c states:

In determining the customs value under the provisions of Article 1, there shall be added to the price actually paid or payable for the imported goods:

Royalties and license fees related to the goods being valued that the buyer must pay, either directly or indirectly, as a condition of sale of the goods being valued, to the extent that such royalties and fees are not included in the price actually paid or payable[.]

Importer does not know total amount of royalties and license fees

If the importer does not know the total amount of the royalties and license fees, and the amount depends on the conditions set forth in the license contract, the importer should include an estimate of those amounts in the electronic system. If the estimate is lower than the exact amount of the royalties and license fees, the importer must pay the additional amount with interest to the tax administration in accordance with Article 61 of the General Customs Law.

For cases in which the amount initially estimated for royalties and license fees is higher than the exact amount, the importer may be eligible for a refund. The importer may claim a refund by following the current tax refund procedure.

For additional information with respect to this Alert, please contact the following:

Ernst & Young, S.A., San José, Costa Rica
  • Mariana Herrera |
  • Carolina Palma |
  • José Martínez Loría |
  • Daniela Torres Gatica |
  • Ana G Sánchez Wellermann |
  • Juan A Nava |
Ernst & Young, LLP (United States), Latin American Business Center, New York
  • Ana Mingramm |
  • Enrique Perez Grovas |
  • Pablo Wejcman |
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Jose Padilla |
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo |
  • Luis Coronado, Singapore |



The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.


Copyright © 2023, Ernst & Young LLP.


All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.


Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.


"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.


Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct