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COSTA RICA |
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Bootlegging Big Business in Costa Rica
Selling contraband liquor is big business in
Costa Rica, as suppliers to restaurants and
"licoreras" (liquor stores) take advantage
of the border controls in Paso Canoas and
the lower prices in Panama.
It is estimated that up ¢5 billion colones
in tax revenue is lost by the ministerio de
Hacienda (Revenue Ministry), although that
number could be much higher, as the extent
in trading of "bootleg" liquor is really
unknown.
Bootleggers, including former police
officers, travel to Panama's side of the
border to purchase liquor at a fraction of
the price in Costa Rica, smuggle it across
the border by way of hiding the contraband
and/or paying border officials and selling
the inventory to restaurants, bars and
licoreras in all areas of the country.
An example is the cost of a bottle of Johnny
Walker Red that sells in Costa Rica for
¢15.000 colones, but can be purchased in
Panama for only ¢5.000. Avoiding the tax on
the sale adds to the profits.
Customers have no way of knowing if the
bottle of liquor they are buying entered the
country legally (tax and duties paid) or was
smuggled in and part of the bootleg network. |
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