The current Panamanian government, led by President Ricardo Martinelli, took office in July 2009. When Panama joined the WTO in 1997, the government lowered tariffs to a maximum of 15%, except for a few agricultural products, and to an overall average of 12%, the lowest in the region. The revised import duty structure was significantly lower than the one negotiated for WTO accession and represented a substantial commitment to trade liberalization.
As part of the concluded negotiations for the Trade Promotion Agreement between the U.S. and Panama, the previous administration approved a Phytosanitary Agreement that eliminated sources of discretion and abuse in the import approval process, thus lifting any existing phytosanitary barriers. Panama has no other trade barriers.
Import Requirements and Documentation
Import Licenses
No import licenses are required in Panama. Any company holding a commercial license can freely import goods into Panama. A commercial or industrial license is required by individuals or companies wishing to engage in commercial or industrial activities. Phytosanitary permits are required to import non-food agricultural products only. Special import permits are required for all types of firearms, ammunition, fertilizers, and certain foods. Import permits can be obtained from the Ministry of Security.
Export Controls
The Fiscal Code regulates all matters concerning the country's exports. The Code establishes that all national products may be exported, except:
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Law 61 of 2002 abolished the requirement for some exports (primarily metals and natural resources) to pay taxes.
Import Documentation
Processing of customs documents in Panama for imports is fast, efficient and reliable. Merchandise imported into Panama must be cleared through customs by a customs broker licensed by the government of Panama. The following goods are imported under duty free status: those that are consigned to national or municipal governments, imported by foreign diplomats, consigned to the Panama Canal, sold to vessels transiting the Canal, or intended for re-export.
Basic import documentation required by the Panamanian Customs office includes:
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Any food product or other item used for human consumption (including for use on human skin or clothes) may be subject to the Certificate of Free Sale (CFS) documentation requirement. The main purpose of the CFS is to verify that a product is sold freely and used widely in the U.S. Potential exporters of items subject to the CFS documentation requirement may wish to contact the Food and Drug Administration, Division of Programs and Enforcement Policy, 200 C Street, SW, Washington, DC 20204. As of the date of this publication, the relevant FDA guidance can be found here: http://www.fda.gov/RegulatoryInformation/Guidances/ucm125789.htm.
The bill of lading must be presented for the clearance of goods without exception. If for any reason any other required document cannot be presented within 24 hours after the shipment has arrived, clearance of the goods will be permitted by posting a bond equal to the amount of import duties. The bond is cancelled if the prescribed documents are presented in due form within a period of 90 days. The bond may be extended in justified cases, an additional 90 days.
Export Documentation
The Vice Ministry of Foreign Trade (VICOMEX) was created in 1998 to promote exports and investment. It facilitates the processing of export documentation through a "One Stop" (Ventanilla Unica) office that can reduce the export process to a few hours.
Export documentation required by Panamanian customs authorities includes:
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There is no requirement to use export brokers for export documentation.
There are no specific U.S. export controls regarding Panama, with the exception of fire arms, ammunition and certain high tech goods that require U.S. export licenses.
The Panamanian Fiscal Code establishes a temporary entry regime of 90 days for all types of merchandise. This temporary entry may be extended for up to one year. There are two options for temporary entry. First, the goods can enter the country if the importer makes a deposit equivalent to the import duty. This payment will be reimbursed at the time the goods leave the country. Second, an insurance company can issue a bond for the importer covering the import duty value, payable if the goods fail to exit the country as scheduled.
Special temporary provisions apply in the case of trade shows and exhibitions taking place at Panama's exhibition and convention center, Atlapa. Goods can enter the Atlapa Convention Center with no warranty payment or bond required. Certain shows held at Atlapa enjoy duty free status and the merchandise displayed may be sold off the floor with no duties.
Samples with commercial value are subject to temporary entry requirements. Samples with no commercial value are admitted duty free. If samples arrive in large containers, they will be dutiable even though they may be marked as free samples.
Labeling and Marking Requirements
Local regulations require labels to be in the Spanish language, although this is not enforced at present, except for medicines, agricultural chemicals, toxic products, and food products that require specific instructions or warnings due to human health risks. Labels are required to have basic information regarding the name and address of manufacturer, expiration date, list of ingredients, lot number, and the product from, e.g. powder, liquid, etc.
In general, products which comply with U.S. labeling and marking requirements are accepted for sale in Panama. Food products labeling and marking must comply with CODEX Alimentarius guidelines.
All goods arriving in Panama intended for re-exportation immediately must be marked "PANAMA IN TRANSIT" on each box or outside container.
Prohibited and Restricted Imports
The following products may not be imported into Panama:
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Customs Regulations and Contact Information
Customs Regulations
Panama assesses import duties on an ad valorem basis. The ad valorem system uses the declared CIF value as the basis for import duty calculations and in some cases utilizes historical price information as a reference.
In addition to the duty, all imports into Panama are subject to a 7 percent transfer or value added tax (ITBM) levied on the CIF value, plus import duty and other handling charges. Pharmaceuticals, foods and school supplies are exempt from the ITBM tax.
When the Trade Promotion Agreement between the U.S. and Panama is fully implemented, some 87% of U.S. products will enter Panama duty free. For other products, duties may be phased out over time. Since there are a number of exceptions it is a good idea to check what products fall under the duty free regime. We suggest that U.S. exporters go through the following process to determine duties today and in the future:
1. Customs Info Database - shows you tariffs/duties that Panama is currently assessing. You can access this database by simply signing up with your email address. Note: Panama already allows duty-free imports for certain projects, e.g. Canal expansion or Metro construction. Please contact us for more information on these exceptions. 2. Tariff Tool for Free Trade Agreements – shows you how tariffs will be phased out for any particular good in any country that has a Free Trade Agreement (current or pending) with the U.S. Cautionary note: this tool does not show agricultural products. In addition, it is not completely accurate for current tariff rates; instead, it shows what Panama is allowed to charge, which may be higher. |
Beginning in 1995, Panama adopted the Harmonized System (HS) or Tariff Nomenclature as its customs classification system.
In general, the Panamanian customs system does not represent a significant obstacle for U.S. exporters.
Contact information for the Panamanian customs’ office is:
Direccion General de Aduanas
P.O. Box 0819-07729
Panama, Panama
Phone: 507-506-6407
Fax: 507-506-6240
Contact: Gloria Moreno de Lopez, Director
E-Mail: Maritza.delopez@ana.gob.pa
www.aduanas.gob.pa
As a WTO member, Panama implemented the WTO's Agreement on Technical Barriers to Trade (TBT) that includes the Code of Good Practice for the Preparation, Adoption and Application of Standards. The government of Panama (GOP) passed Law 23 of July 15, 1997, which established new dispositions on product standards, labeling and certification policy, and redefined the functions of the Directorate General of Standards and Industrial Technology (DGNTI) and the Panamanian Commission for Industrial and Technical Standards (COPANIT). Basically, DGNTI was given the main role in establishing standards and technical regulations, while COPANIT was given an advisory role to DGNTI. The National Council for Accreditation (CNA) was charged with all national accreditations.
Panama has an open economy and there are no significant market access problems related to standards and technical regulations. Certain market access problems have occurred in the past with several agricultural products, but they have been mostly related to phytosanitary issues.
According to WTO guidelines, Panama informs WTO of any standards or technical regulations activities. U.S. companies can participate in the standards development process by contacting DGNTI and submitting specific requests or suggestions. There are no limitations to participation by foreign countries.
Products for which Panama has not set standards/regulations can enter the Panamanian market provided that they comply with standards and technical regulations from the U.S., Europe or any other industrialized country.
The Directorate General of Standards and Industrial Technology (DGNTI) establishes technical regulations and standards in Panama. Because of budget and other limitations, this organization has been mostly dedicated to establishing standards for food products upon specific requests by industrial organizations and according to WTO guidelines. DGNTI establishes a semiannual working plan showing all activities it will undertake for the following six months. DGNTI performs its functions through its three departments: Standards, Certifications and the Information Center.
U.S. Government’s “Notify U.S.” Service
Member countries of the World Trade Organization (WTO) are required under the Agreement on Technical Barriers to Trade (TBT Agreement) to report to the WTO all proposed technical regulations that could affect trade with other Member countries. Notify U.S. is a free, web-based e-mail subscription service that offers an opportunity to review and comment on proposed foreign technical regulations that can affect your access to international markets. Register online at http://www.nist.gov/notifyus/.
While DGNTI leads in conducting conformity assessments, it is joined by a number of other public and private organizations. These organizations include the Central Laboratory of Health from the Ministry of Health (MINSA), the University of Panama, the Technological University of Panama, the National Secretariat of Science and Technology (SENACYT), the Ministry of Agricultural Development (MIDA), the Consumer Protection Authority and Defense of Competition, and the Agricultural Marketing Institute (IMA). Panama does not have any Mutual Recognition Agreement (MRA) with U.S. organizations.
Once the conformity assessments have been conducted, the DGNTI will issue a conformity assessment certificate. DGNTI is the only organization authorized to issue conformity assessments related to products. Other private organizations such as SGS and Bureau Veritas deal with conformity assessments on system or procedures and can issue certificates, but only related to systems.
The National Council for Accreditation (CNA) created by Law 23, July 15, 1997, is the government authority in charge of all national accreditations. This Council is formed by a number of government organizations including the Ministries of Commerce, Health and Agricultural Development, and the National Secretariat of Science and Technology (SENACYT). The CNA works through a technical secretariat, which is the technical body of the Council. Accreditation is largely voluntary.
The technical secretariat appoints accreditation committees, which are groups formed by specialists from the public and private sectors. These committees provide basic input for CNA decisions. Accreditation is obligatory for organizations that deal with fuel laboratories and environmental testing laboratories. All other accreditations are voluntary. Accreditation can be granted in three categories: Laboratories (calibration and testing), inspection organizations, and certifying organizations. As of December 2010 there were fifteen organizations that had been accredited by CNA, but there were several accreditation applications under review.
Publication of Technical Regulations
All final technical norms and regulations are published by the Ministry of Commerce and Industry in the Official Gazette or “Gaceta Oficial.”
Law 23 requires that the Panamanian Commission for Industrial and Technical Standards (COPANIT) and the General Directorate of Standards and Industrial Technology (DGNTI) publish all agreements, technical regulations, norms and procedures.
Official Gazette or Gaceta Oficial: http://www.gacetaoficial.gob.pa/
Panama, Rep. of Panama
Tel. (507) 527-9393
Fax. (507) 527-9391
The WTO TBT Inquiry Point and National Information Center is:
Comision Panameña de Normas Industriales y Tecnicas (COPANIT)
P.O. Box 0815-01119
Panama, Rep. Of Panama
Tel. (507) 560-0716
Fax. (507) 560-0721
E-mail: dgnti@mici.gob.pa
http://www.mici.gob.pa
Panama has full FTAs in force with (including date of entry into force): El Salvador (2003), Taiwan (2004), Singapore (2006), Chile (2008), Costa Rica (2009), Honduras (2009), Guatemala (2009), Nicaragua (2010), and Peru (2012). Panama has partial FTAs with Mexico (1985), Dominican Republic (1987), and Cuba (2009). It has completed negotiations on two more agreements: Canada (signed in 2010 and passed by the Panamanian National Assembly in 2010) and the European Union (signed in 2010).
On June 28, 2007, the United States and Panama signed the United States-Panama Trade Promotion Agreement (TPA). Panama approved the TPA on July 11, 2007. The US Congress approved implementing legislation on October 12, 2011, and President Obama signed it on October 21, 2011. Presidents Obama and Martinelli have agreed to implement the TPA as quickly as possible, but no date has been set for it to enter into force. When the TPA enters into force, it will result in significant liberalization of trade in goods and services, including financial services. The TPA also includes important disciplines relating to customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, electronic commerce, intellectual property rights, and labor and environmental protection. Under the TPA, U.S. firms will have better access to Panama’s services sector than Panama provides to other WTO Members under the General Agreement on Trade in Services. All services sectors are covered under the TPA except where Panama has made specific exceptions. Moreover, Panama agreed to become a full participant in the WTO Information Technology Agreement. Panama has also entered into a bilateral agreement with the United States that resolved a number of regulatory barriers to trade in agricultural goods ranging from meat and poultry to processed products, including dairy and rice.
Panama is a beneficiary of the Caribbean Basin Economic Recovery Act, better known as the Caribbean Basin Initiative (CBI), which provides for one-way free trade access for specific Panamanian exports to the U.S.
Panama has bilateral investment agreements with the United States, the United Kingdom, France, Switzerland, Germany, Taiwan, Canada, Argentina, Spain, Chile, Uruguay, the Czech Republic, Netherlands, Cuba, Mexico, Dominican Republic, Korea Ukraine, Sweden, Qatar, Finland, and Italy. The U.S.-Panama Bilateral Investment Treaty (BIT) entered into force in 1991 (with additional amendments in 2001 to reflect Panama's joining the International Center for the Settlement of Investment Disputes (ICSID). Once in force, the investor protection provisions in the TPA will supplant those in the BIT. Nevertheless, the TPA preserves for ten years the option for investors to invoke dispute settlement under the BIT with respect to investments covered by the Treaty as of the date of entry into force of the TPA, in the case of disputes that arose prior to the date of entry into force of the TPA, and for disputes arising on or after the date of entry into force of the TPA out of an investment agreement that was in effect before the date of entry into force of the TPA.
Ministerio de Comercio e Industrias (Ministry of Commerce and Industry)
Ricardo Quijano, Minister
P.O. Box 0815-01119
Panama, Republic of Panama
Tel: (507) 560-0661
Fax: (507) 560-0663
www.mici.gob.pa
Direccion General de Normas y Tecnologia Industrial (DGNTI)
Contact: Vacant, Director General
P.O. Box 0815-01119
Panama, Rep. of Panama
Tel. (507) 560-0716
Fax. (507) 560-0721
E-mail: dgnti@mici.gob.pa
Comision Panameña de Normas Industriales y Tecnicas (COPANIT)
Contact: Ahmed Moron, Acting Director
P.O. Box 0815-01119
Panama, Rep. of Panama
Tel. (507) 560-0716
Fax. (507) 560-0721
E-mail: dgnti@mici.gob.pa
Consejo Nacional de Acreditacion (CNA)
Contact: Ahmed Moron, Section Chief
P.O. Box 0815-01119
Panama, Republic of Panama
Phone: (507) 560-0715
Fax: (507) 560-0715
E-mail: aemoron@mici.gob.pa
http://www.cna.gob.pa
Ministerio de Desarrollo Agropecuario (Ministry of Agricultural Development)
Oscar A. Osorio, Minister
P.O. Box 0816-01611
Panama, Republic of Panama
Tel: (507) 507-0601
Fax: (507) 232-9045
www.mida.gob.pa
Ministerio de Salud, (Ministry of Health)
Dr. Franklin Vergara, Minister
P.O. Box 0816-01611
Panama, Republic of Panama
Tel: (507) 512-9100
Fax: (507) 512-9240
www.minsa.gob.pa
