II.That by Resolution N° PA-MAG-024-2017 at fourteen hundred hours on May 4, 2017, published in the Official Gazette La Gaceta N° 98 of May 25, 2017, the MAG ordered the initiation of the "administrative procedure in accordance with Part IV, Articles 11, 12, 13, 14, 15 and subsequent and concordant articles of Executive Decree N° 23912-COMEX-MAG-MEIC, of December 22, 1994, published in the Official Gazette La Gaceta No. 246 of December 27, 1994, for the purpose of initiating the due process for the application of the Special Agricultural Safeguard (SGE) by volume in the case of the agricultural product called rice, so that with adherence to the rules of due process and right of defense and based on what is indicated in this Resolution, the real truth of the facts is investigated and the existence of grounds for the imposition of an SGE is established, or the exemption from said measure regarding rice imports, in accordance with the Law for the Implementation of the Agreements of the Uruguay Round of Multilateral Negotiations, N° 7473 of December 20, 1994", thereby forming the administrative case file N° AR-MAG-001-2017 for this purpose.
III.That the product subject to the ordered investigation is defined as: "Husked (brown) rice, also called cargo or brown rice, from which only the inedible outer husk or glume has been removed, this preserves the intact germ with the bran layer that surrounds it, which gives it a brownish color"; classified under tariff subheading 1006.20.00.00 of the Sistema Arancelario Centroamericano (SAC).
IV.That by virtue of the provisions of Article 14 of the "Regulations on Special Safeguard Measures for Agricultural Products", the Investigating Commission formed by the MAG granted a hearing to any interested party for a period of 5 business days so that they could express what they deemed appropriate regarding the cited procedure. Given that, during the aforementioned period, no hearing request was received and having gathered the necessary information from the competent authorities, said body proceeded to issue the "Final Report with Recommendations" (AR-MAG-001-2017) communicated to the head of Agriculture and Livestock, via official letter AR-MAG-002-2017 of June 23, 2017, concluding, in said report, among other aspects, that:
"a. The increase in imports of brown rice is generating an increase of the available national rice inventories, creating repeated and growing surpluses, especially in the last year, in the national market.
b. As demonstrated by comparing imports, according to official data from the Ministry of Finance, with the historical national consumption data for brown rice provided by CONARROZ, it can be concluded that a change in the historical consumption of brown rice has not been fostered; the difference of these growing import volumes is entering the rice industrialization system for processing, which becomes a practice that directly and indirectly affects the placement of national production."
V.That, likewise, said Commission determined, based on data provided by the General Directorate of Customs and CONARROZ, in application of the methodology established for these purposes in the Agreement on Agriculture of the WTO and in Executive Decree Nº 23912-COMEX-MAG-MEIC of December 22, 1994, "Regulations on Special Safeguard Measures for Agricultural Products", that the trigger volume of the SGE is 3,805,206.05 Kg.
VI.That the body instructing the procedure, through the "Final Report with Recommendations" at fourteen hundred hours and thirty minutes on June 23, 2017, administrative case file N° AR-MAG-001-2017, recommended to the Minister of Agriculture and Livestock:
"I.— To apply a Special Agricultural Safeguard on imports under the national tariff subheadings 1006.20.00.00.91 and 1006.20.00.99 originating from third markets, with an additional tariff of 11.67%.
II.This measure shall not apply to imports originating in the United States covered by the Free Trade Agreement between the Dominican Republic-Central America-United States (CAFTA-DR) in accordance with paragraph 5 of the General Notes of the Tariff Schedule of the Republic of Costa Rica.
III.This measure shall not apply to products originating in Central America, Chile, and Mexico, given that the tariff applied within the framework of the respective trade agreements is already at 0%.
IV.The husked (brown) rice, whose contract for export to Costa Rica was finalized before the day on which the SGE measure enters into force and whose transport to Costa Rica was initiated prior to that date, shall be exempt from paying the amount of the SGE tariff. Said date shall be demonstrated by presenting the cargo policy or any other authentic and consularly legalized document that reliably demonstrates the date on which the transport, by any means, of the product to Costa Rica effectively began.
V. To maintain the validity of the measure from the moment of publication of this resolution until December 31, 2017
VI.To notify this resolution to the General Directorate of Customs so that it proceeds with the implementation of the measure."
VII.That by official letter N° DM-MAG-469-2017 of June 28, 2017, the Minister of Agriculture and Livestock stated in relation to the "Final Report with Recommendations" issued by the Investigating Commission that, having analyzed the information contained in case file AR-MAG-001-2017, the application of the cited safeguard is considered pertinent, and therefore requests to continue with the corresponding procedure.
VIII.That in accordance with Article 17 of the "Regulations on Special Safeguard Measures for Agricultural Products", Executive Decree Nº 23912-COMEX-MAG-MEIC of December 22, 1994; "once the information is gathered and if there is merit, the MAG, jointly with the Ministry of Foreign Trade and the Ministry of Economy, Industry and Commerce, shall issue an Executive Decree, in strict compliance with the period referred to in Article 10, in which the SGE shall be put into effect". Therefore, by official letter number DM-MAG-532-2017 of July 20, 2017, the Ministry of Agriculture informed the heads of the Ministries of Economy, Industry and Commerce and Foreign Trade, respectively, about the administrative procedure followed and the recommendations of the directing body, as well as the need to issue a "Special Agricultural Safeguard" activated by volume on imports of brown rice under tariff subheadings 1006.20.00.00.91 and 1006.20.00.99 of the import tariff under the terms and conditions of the "Final Report with Recommendations", coordinating for this purpose the enactment of the corresponding Executive Decree.
IX. That in accordance with the second and third paragraphs of
Article 12 bis of the Regulations to the Law for the Protection of Citizens from an Excess of Administrative Requirements and Procedures, Executive Decree N° 37045-MP-MEIC of February 22, 2012; Section I called "Prior Control of Regulatory Improvement" of the "Cost-Benefit Assessment Form" was completed, with the assessment of the regulatory proposal yielding a negative result and that it contains no procedures, requirements, or formalities, thus it was determined that it was not necessary to continue with the cited regulatory analysis.
X.That it is in the interest of the State that the positive legal order provides the highest degree of certainty and security possible for the governed and for the Public Administration itself, in the interest of an adequate application of legal norms, for which reason the Government must seek the maximum consistency and adaptation of the acts of the Administration with the purpose that these are in accordance with the current legislation and the international commercial commitments assumed by Costa Rica. Thus, in accordance with the cited legal framework and in the interest of achieving the public interest and fulfillment of the State's objectives, under the protection of the Principles of Legality, Transparency, and Good Governance and, following the Rule of Competence enshrined in the legal order, the respective procedure having been completed in this case, it is deemed necessary to implement this "Special Agricultural Safeguard" on imports of brown rice under subheadings 1006.20.00.00.91 and 1006.20.00.99 of the Import Tariff.
Therefore; THEY DECREE:
Implementation of a Special Agricultural Safeguard (SGE) activated by volume on imports of brown rice under subheadings 1006.20.00.00.91 and 1006.20.00.99 of the Import Tariff.