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Duties and Tax Exemption
Customs Clearance

Duties and Tax Exemption

For contact information regarding government custom authorities, please follow the link below:

Emergency Response:

Agreements / Conventions Description	Ratified by Country? (Yes / No)
WCO (World Customs Organization) member	Yes. March 8, 1996
Annex J-5 Revised Kyoto Convention	No
OCHA Model Agreement	N/A
Tampere Convention (on the Provision of Telecommunication Resources for Disaster Mitigation and Relief Operations)	Yes. March 5, 2003
Regional Agreements (on emergency/disaster response, but also customs unions, regional integration)	Yes, The Caribbean Disaster Emergency Management Agency (CDEMA) Coordination Center for the Prevention of Disasters in Central America and the Dominican Republic (CEPREDENAC) Regional Mechanism for Humanitarian Assistance ahead of Disasters of the Central American Integration System- MecReg-SICA Central American Protocol for shipment, transit and reception of humanitarian assistance and international technique in disaster/emergency situations. Central American Procedure for facilitating ground transportation of relief shipments. Resolution 306-2017 (COMIECO-EX)

Exemption Regular Regime (Non-Emergency Response)

In Panama, the exemption of import tariffs and taxes for humanitarian aid is regulated by Cabinet Decree No. 12 of 29 March 2016- Article 150(a).

Tax exonerations are granted based on special laws. These are independent of the harmonized system code applicable to equipment, goods and other items, necessary for the economic activity of the company or the international organization.

Entities allowed to operate in the country during emergencies are international organizations, as well as Panamanian and government entities that can import humanitarian aid and relief items.

The Law that protects the importer determines the recognition to the right to tax exemption. For example: the Office of the First Lady can import goods for humanitarian aid with the exception of vehicles; whilst the International Federation of Red Cross and Red Crescent Societies does benefit of vehicle exemption.

Organizational Requirements to obtain Duty Free Status
United Nations Agencies
Must be accredited as an International Organization before the Ministry of Foreign Affairs. Request of exemption for each shipment from the Ministry of Foreign Affairs before the National Customs Authority. Pre-declaration from Customs on behalf of the organization. Bill of Lading of the goods consigned to the United Nations. Necessary requirements in compliance with the nature of the goods on behalf of the Foreseeing Authorities.
Non Governmental Organizations
Accreditation on behalf of the corresponding Foreign Authority. Example: churches, Remar Foundation, both are certified by different foreseeing authorities. Request of exemption from the National Customs Authority. Pre-declaration in name of the NGO. Bill of Lading of the goods consigned in name of the NGO.

Exemption Certificate Application Procedure

Duties and Taxes Exemption Application Procedure
Overview (include a list of necessary documentation)
Accreditation on behalf of the Foreseeing Authority that regulates the activity. Request of exemption before the National Customs Authority. Pre declaration from Customs Bill of Lading. Note: These documents are per shipment.
Process to be followed (step by step or flowchart)
Note: If the organization is not empowered to self-manage its authorization for exemption, it must be submitted by a certified Customs Broker, authorized by the National Customs Authority. The interested Party or Customs Broker hands out the request to the Technical Management Directorate of the National Customs Authority The Technical Management Directorate submits the request to the Tax Exemption Department. Tax Exemption Analysts review the request along the attached documentation covering such. In case of inconsistencies, the requests returned to Technical Management Directorate to notify the interested party and proceed to rectify. In case of no inconsistencies, it is submitted to Fiscal Control of the Office of the Comptroller General of the Nation located at the Customs Headquarters. In case of inconsistencies, it’s returned to Tax Exemptions so they notify the Interested Party to proceed to rectify. In case of no inconsistencies, it is countersigned and returned to Tax Exemptions. The Tax Exemption Analyst authorizes and feeds the Customs Pre-declaration to the Computer or IT System. It is then submitted to the Technical Management. Technical Management notifies the interested party /Customs Broker. The interested party / Customs Broker is now able to register from Pre-declaration to Declaration.

Exemption Certificate Document Requirements

Duties and Taxes Exemption Certificate Document Requirements (by commodity)
	Food	NFI (Shelter, WASH, Education)	Medicines	Vehicle & Spare Parts	Staff & Office Supplies	Telecoms Equipment
Invoice	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy
AWB/BL/Other Transport Documents	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy
Donation/Non-Commercial Certificates	Yes, 1 copy for donations	Yes, 1 copy for donations	Yes, 1 copy for donations	Yes, 1 copy for donations	Yes, 1 copy for donations	Yes, 1 copy for donations
Packing Lists	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy	Yes, 1 copy
Other Documents	Letters from Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable.	Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable Permits required by the Overseeing Authorities, if applicable.	Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable*.	Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable.	Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable.	Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable.
Additional Notes
* Requirements for the admission of regular medicines: Present the following documentation at the window of the Imports Department, located at Building 253, ground floor of the Ministry of Health in Ancon: Customs Pre-declaration (issued by Customs Brokers) Invoice which meets the requirements of information presented in article 68 of law 1 of 10 January 2001 pertinent to medications and other products for human health, and article 16 of executive decree 36 of 17 January 2020. Invoice must contain the following details: Commercial name or generic of the product Unit dose Presentation Registration number Lot or batch number Packaging with lot number and expiration date of the pharmaceutical product Name of manufacturing company, and diluent manufacturer if applicable Name of packaging company Country of origin and manufacturing country Routes of administration Drug concentration Other requirements requested by the overseeing authority. The Bill of Lading (air waybill, consignment note, maritime bill of lading, as may be the case) Valid Certificate of Operations by Pharmacy & Drug. There are additional documents that need be presented if required by the product, such as the duly legalized Diethylene glycol negative certification, import/export permits of controlled substances. Requirements for the admission of vaccines: Present the following documentation at the window of the Imports Department, located at Building 253, ground floor of the Ministry of Health in Ancon. Customs Pre-declaration (issued by Customs Brokers) Invoice which meets the requirements of article 68 of law 1 of 10 January 2001 pertinent to medications and other products for human health, and article 16 of executive decree 36 of 17 January 2020. The Bill of Lading (air waybill, consignment note, maritime bill of lading, as may be the case) Valid Certificate of Operations by Pharmacy & Drug. Technical documentation (lot release certificate issued by the health authority of the country of origin and duly apostilled certificate of analysis), article 281 of the Executive Decree 95 of 15 May 2019, and article 69 of law 1 of 10 January 2001. Summary Protocol of Production and Quality Control

Duties and Taxes Exemption Certificate Document Requirements (by commodity)

Food

NFI (Shelter, WASH, Education)

Medicines

Vehicle & Spare Parts

Staff & Office Supplies

Telecoms Equipment

Invoice

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

AWB/BL/Other Transport Documents

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Donation/Non-Commercial Certificates

Yes,

1 copy for donations

Yes,

1 copy for donations

Yes,

1 copy for donations

Yes,

1 copy for donations

Yes,

1 copy for donations

Yes,

1 copy for donations

Packing Lists

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Yes,

1 copy

Other Documents

Letters from Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable.

Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable

Permits required by the Overseeing Authorities, if applicable.

Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable*.

Letters from the Ministry of Foreign Affairs, if applicable. Permits required by the Overseeing Authorities, if applicable.

Additional Notes

* Requirements for the admission of regular medicines:

Present the following documentation at the window of the Imports Department, located at Building 253, ground floor of the Ministry of Health in Ancon:

Customs Pre-declaration (issued by Customs Brokers)
Invoice which meets the requirements of information presented in article 68 of law 1 of 10 January 2001 pertinent to medications and other products for human health, and article 16 of executive decree 36 of 17 January 2020. Invoice must contain the following details:
1. Commercial name or generic of the product
2. Unit dose
3. Presentation
4. Registration number
5. Lot or batch number
6. Packaging with lot number and expiration date of the pharmaceutical product
7. Name of manufacturing company, and diluent manufacturer if applicable
8. Name of packaging company
9. Country of origin and manufacturing country
10. Routes of administration
11. Drug concentration
12. Other requirements requested by the overseeing authority.
The Bill of Lading (air waybill, consignment note, maritime bill of lading, as may be the case)
Valid Certificate of Operations by Pharmacy & Drug.
There are additional documents that need be presented if required by the product, such as the duly legalized Diethylene glycol negative certification, import/export permits of controlled substances.

Requirements for the admission of vaccines:

Present the following documentation at the window of the Imports Department, located at Building 253, ground floor of the Ministry of Health in Ancon.

Customs Pre-declaration (issued by Customs Brokers)
Invoice which meets the requirements of article 68 of law 1 of 10 January 2001 pertinent to medications and other products for human health, and article 16 of executive decree 36 of 17 January 2020.
The Bill of Lading (air waybill, consignment note, maritime bill of lading, as may be the case)
Valid Certificate of Operations by Pharmacy & Drug.
Technical documentation (lot release certificate issued by the health authority of the country of origin and duly apostilled certificate of analysis), article 281 of the Executive Decree 95 of 15 May 2019, and article 69 of law 1 of 10 January 2001.
Summary Protocol of Production and Quality Control

Customs Clearance

General Information

Customs Information
Document Requirements	Customs Declaration Invoice Transport Document Licenses / Regulations
Embargoes	None
Prohibited Items	Illegal Substances. Weapons of Mass Destruction. Others established by law.
General Restrictions	N/A

Customs Clearance Document Requirements

	Food	NFI (Shelter, WASH, Education)	Medicines	Vehicles & Spare Parts	Staff & Office Supplies	Telecoms Equipment
D&T Exemption Certificate	No	No	No	No	No	No
Invoice	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies
AWB/BL/Other Transport Documents	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies
Donation/Non-Commercial Certificates	No	No	No	No	No	No
Packing Lists	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies	Yes, original and 2 copies
Phytosanitary Certificate	Yes, original and 2 copies	Yes, in case required.	No.	Yes, original and 2 copies	Yes, in case required.	No.
Other Documents			Authorization from Pharmacy & Drug (by IT Systems or countersigned in the Declaration)
Additional Notes
N/A

Transit Regime

Internal transits employ the Internal Transit form regulated by Cabinet Decree no. 12 of 29 March 2016. For the international transit of goods, the resolution 386-2017 (COMIECO-EX) was approved, which regulates the Central American procedure for the facilitation of ground transportation of relief shipments during emergencies, in case of regular shipments the COMRIEDRE65-2001 regulation applies.

For export and imports of relief consignments applies articles 554 to 562 of the RECAUCA (urgent shipments).

Means of transportation adequate to carry non-nationalized cargo under the aforementioned form must meet the following conditions:

That shutting devices bear the necessary security for authorization;
That customs seals can be placed easily, in a simple and efficient manner;
That there are no hidden places in which cargo can be concealed;
That it does not allow the easy removal or addition of cargo without violating customs seals;
That all parts of the transport vehicle which can contain cargo should be readily accessible for customs inspection.

The use of custodians applies each time the means of transport does not meet any of the prior requirements employing costs established through Cabinet Decree no. 12 of 29 March 2016.

For customs bond Article 110 of the RECAUCA applies.

Admissions of Pharmaceuticals in transit to Panama

The transit of medicines through Panama is only allowed if the agent of the imports company operates in Panama and Central America, and fills out the paperwork in Panama to nationalize the cargo, to be later dispatched to the different countries of destination.. The invoice must declare that these products are destined for other countries and will not remain in Panama.