Zeta Group announced a new Zona Franca (free trade zone) to be located in Cartago, east of San José, that will attract some us$60 million dollars in investment and create thousands of new jobs.

     The new Zona Franca business park is called Techno Park and is an expansion of the Cartago Industrial Park, next to garment manufacturers Hanes and Levi Straus.

     Techno Park hopes to attract "call centres", along with computer and telecommunications companies.

     Cesar Zingone, VP at Zeta, said that the country is moving towards a more specialized labour as more companies are specializing in services, moving away from manufacturing and Zeta is moving to respond to the change.

     The project could employ almost 10.000 people when it is completed which is expected within the next five years. Zeta already operates Zonas Francas, in addition to Cartago, in Alajuela and Heredia, were some 14.000 people are employed by businesses located there.

 

   Grupo Zeta developed the concept of free zones in Costa Rica and also owns the Megasuper grocery chain. It also is involved heavily in the real estate industry with massive condo projects in Jacó and Escazú.

     Costa Rican president, Oscar Arias, was the keynote speaker at the opening of the business park, accompanied by several members of his government, legislators and business chambers.

      The concept behind the Zonas Francas are secured areas outside of Costa Rica's Customs territory - for tariff, duty Customs and Customs entry purposes only - where you can set up your business and get a collection of benefits, exemptions, and laws granted to companies in the export business and/or their solution partners operating in these areas. All other Costa Rican laws apply.

     Each Zona Franca is individually managed by a private corporation supervised by the Zona Franca Board. The Zona Franca Board grants companies the Zona Franca benefits and operational permits. It consists of two organizations: PROCOMER (Foreign Trade Marketing Company) and COMEX (Ministry of Foreign Trade).

     Companies established in Zonas Francas can service companies associated with the development or enhancement of Zona Franca located on any Costa Rican Zona Franca or overseas. They can hire services from other companies located in Zonas Francas, and conduct business in U.S. dollars, however, they are required to exchange dollars at any Costa Rican State-owned or private bank.

     Merchandise, products, raw materials, components, containers, packing accessories, or any other material that would enhance the export or re-export process of a company in Zona Franca lawfully brought into a Zona Franca may be stored, exhibited, broken up, packed, repacked, processed, refined, distilled, assembled, distributed, sorted, graded, cleaned, mixed with foreign or domestic merchandise, or otherwise manipulated or manufactured.

 The benefits extended to companies establishing in Zonas Francas include:

•  100 percent exemption from import duties on raw materials, processed or semi-processed products, parts or components;
• 100 percent exemption from all export taxes associated with the export or re-export of products. The same exemption is granted for the re-export of equipment and machinery used in the production process;
• 100 percent exemption from sales and consumer taxes, and taxes levied on remittances abroad;
• 100 percent exemption from income tax for the first eight years of operations; and
•  Credit for job creation in rural areas.

   In addition to these benefits, companies operating in Zonas Francas enjoy simplified investment, trade, and customs procedures.