Basic information
Outline of the system
The import licensing system is governed by Law No. 23 of 15 July 1997, Title III "General
Provisions Governing the Processing of Import Licences issued by State Institutions" and Resolution No. 5 of 18 November 1998 "Regulations Governing the Granting of Import Licences for Products Subject to Tariff Rate Quotas"
Product coverage
The system includes two types of licensing: automatic import licensing, which is for
statistical purposes, and non-automatic import licensing, which applies to goods that may enter the customs territory upon payment of an import duty lower than the normal duty.
Nature of licensing
Automatic
If Automatic, administrative purpose
Non-Automatic
If Non-Automatic, description of the notified Non-Automatic Licensing regime
Products under restriction as to the quantity or value of imports
The licensing is for the administration of tariff rate quotas.
Questions for products under restriction as to the quantity or value of imports
See answers 6.1-6.11
The system applies to products originating from which country?
The system applies to goods originating in and coming from all countries.
Expected duration of licensing procedure
Legal requirements
Is the licensing statutorily required?
The legal basis for import licensing is Law No. 23 of 15 July 1997, Title III "General Provisions Governing the Processing of Import Licences Issued by State Institutions" and Resolution No. 5-98 of November 1998 "Regulations Governing the Granting of Import Licences for Products
Subject to Tariff Rate Quotas".
Does the legislation leave designation of products to be subject to licensing to administrative discretion?
The Import Licensing Commission has no authority to determine which goods will be subject to licensing
Is it possible for the government to abolish the system without legislative approval?
The executive branch cannot abolish the system without legislative approval, following upon the corresponding negotiations within the World Trade Organization.
Eligibility of applicants
Is there a system of registration of persons or firms permitted to engage in importation?
What persons or firms are eligible to apply for a licence?
All persons, firms and institutions are eligible to apply for licences.
Is there a registration fee?
Is there a published list of authorized importers?
Contact point for information on eligibility
Ministry/Authority
Address
Telephone
Fax
E-mail address
Website
Contact officer
Submission of an application
Administrative body(ies) for submission of an application
The Technical Secretariat of the Import Licensing Commission
Documentation requirements
What information is required in applications?
What documents is the importer required to supply with the application?
Sample application forms for non-automatic licences are enclosed. They must be submitted
together with all the particulars of the applicant, the company, the address and the tariff items or
products to be imported.
Window of submission of an application
How far in advance of importation must application for a licence be made?
Licence applications must be submitted prior to the arrival of the product at the port
of entry.
Are there any limitations as to the period of the year during which application for licence can be made? If so, explain
There are no limitations as to the period of the year during which applications for
licence and/or importation may be made.
Issuing the license
Can a licence be granted immediately on request?
Licences are processed and issued within a period of not more than 24 hours.
Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence
In the event that unlicensed goods arrive at a port, an assessment of the health risk is carried out and, on that basis, the goods are detained and the licence is granted at a later date.
Which administrative body is responsible for approving application of licences?
The Executive Directorate of Agricultural Quarantine is the sole administrative body
responsible for examining licence applications that do not have quantitative limits.
Must the applications be passed on to other organs for visa, note or approval?
The Executive Directorate of Agricultural Quarantine is the sole administrative body
responsible for examining licence applications that do not have quantitative limits.
Are there any other conditions attached to the issue of a licence?
There are no conditions attached to the issue of a licence, other than those established by
Resolution No. 5-98 of 18 November 1998 and Law No. 23 of 1997.
Fees and other administrative charges
Is there any licensing fee or administrative charge?
There is no licensing fee or administrative charge.
What is the amount of the fee or charge?
Is there any deposit or advance payment required associated with the issue of licences?
There is no deposit or advance payment requirement associated with the issue of licences.
Amount or rate?
However, in order to ensure that the goods are actually imported, a sum equivalent to 20 per cent of the price quoted for each offer of purchase or sale must be deposited prior to the beginning of the negotiating round so as to guarantee the seriousness of the bids submitted during the negotiating round, the fulfilment of the operating contract awarded, the import of the products in the specified period and the rights arising from such importation.
Is it refundable?
What is the period of retention?
What is the purpose of this requirement?
Refusal of an application
Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria?
Apart from the ordinary criteria, there are no other circumstances on the basis of which a licence may be refused. By ordinary criteria, we mean those stipulated in Panamanian Law No. 135 of 30 April (Organic Law on the Administrative Litigation System of 1943 as amended by Law No. 33 of 1946 and Law No. 39 of 1954). All of the relevant provisions of the Judicial Code are applicable to them. The following government remedies are available for administrative matters of a national character: (a) Reconsideration by a first-instance administrative officer, with a view to the clarification, modification or revocation of the decision; (b) Appeal before that officer's immediate superior for the same purposes.
Are the reasons for any refusal given to applicants?
If a licence is refused, the applicant is informed of the reasons in writing and has the right to appeal against the decisions of the competent licensing authorities.
Have applicants a right of appeal in the event of refusal to issue a licence?
Yes.
If so, to what bodies and under what procedures?
If, for any reason, a licence which does not refer to the basic or sine qua non requirements set out in point 6 concerning procedures is refused, and the affected party considers that it has a particular right, the first step is to apply to the Technical Secretariat of the Import Licensing Commission for reconsideration. If such an application is unsuccessful, the applicant or affected party has the right to appeal before the Import Licensing Commission. Once these two steps have been taken, the government remedies are considered to have been exhausted, automatically opening the way to judicial remedy in the Third Chamber of the Administrative Litigation Court, as specifically regulated in Law No. 135 on the Administrative Litigation System of 1943 as amended by Law No. 33 of 1946 and Law No. 39 of 1954. Moreover, Article 139, Title III of Law No. 23 of 15 July 1997, which approved the Marrakesh Agreement and contains other provisions, states that "the decisions of the competent import licensing authorities shall be open to appeal through the administrative litigation courts and all the provisions established by the Judicial Code in that regard shall be applicable to them".
Importation
Are there any limitations as to the period of year during which importation may be made?
There are no limitations as to the period of the year during which applications for licence and/or importation may be made.
What documents are required upon actual importation?
Upon actual importation, the importer must present a copy of the duly attested customs clearance form and the receipt of payment.
Are there any other administrative procedures, apart from import licensing and similar administrative procedures, required prior to importation?
There are no other administrative procedures, apart from import licensing, required prior to importation.
Conditions of licensing
What is the period of validity of a licence? Can the validity be extended? How?
The licence is valid for a period of 60 days from the date of issue. The period of validity may be extended if the applicant so requests.
Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a licence or a portion of a licence.
Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licences are not transferable between importers.
Foreign Exchange
Is foreign exchange automatically provided by the banking authorities for goods to be imported?
Is a licence required as a condition to obtaining foreign exchange?
There is no restriction on obtaining foreign currency for the payment of the goods to be imported.
Is foreign exchange always available to cover licences issued?
What formalities must be fulfilled for obtaining the foreign exchange?
The following questions are only for products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally)
Where is information on allocation and formalities for licences published? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Notices are published in two newspapers with national circulation, in three editions on different days at least 21 calendar days prior to the date on which the corresponding negotiating rounds are due to begin, providing detailed information on the products, tariff headings, terms of delivery, the size of the quota, the number of lots into which the quota is divided, the period of validity of the import licence, the tariff payable, condition of the products, health requirements and conditions of
eligibility (buyers and sellers).
Is the size of the quota determined: on yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for a fresh licence on a six-monthly or quarterly basis?
The size of the quotas is determined on a yearly basis. It should be stressed that for the year 1997, import licences for quotas were allocated for the last four months of the year, on account of the fact that the Republic of Panama had become a permanent Member of WTO as of 6 September 1997. Importers must apply for new licences for each quota that comes up for negotiation.
Are licences allocated for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate)
Licences are granted on a random basis and both international and domestic buyers and sellers are eligible to apply. For each draw, each economic operator may tender for each lot of quotas to be negotiated. Once allocated, tariff rate quotas are not transferable. If a quota is not allocated, either totally or partially, during a specific period the relevant amount may be added to the quota of the immediately succeeding period. This rule of accumulation applies for periods within the same year, but for not more than two periods. In order to ensure that the goods are actually imported, a sum equivalent to 20 per cent of the price quoted for each offer of purchase or sale has to be deposited prior to the beginning of the negotiating round so as to guarantee the seriousness of the bids submitted during the negotiating round, the fulfilment of the operating contract awarded, the import of the product in the specified period and the rights arising from such importation. The relevant public authorities will provide, on the request of any natural or legal person, domestic or foreign, that has an interest in the trade of a product, all relevant information on the application of restrictions, the import licences granted recently, the allocation of these licences among supplying countries and, when feasible, import statistics on the value and/or volume of the products subject to import licensing.
From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
From the time of announcing the opening of quotas, a period of 21 days is allowed for the submission of licence applications.
What are the minimum and maximum lengths of time for processing applications?
The maximum and minimum lengths of time for processing applications are within the period of 21 days from the announcement of the opening of quotas.
How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
The minimum time between the granting of a licence and the date of opening of the period of importation is 72 hours, during which time the contract of sale must be presented, in order to proceed to the actual importation of the quota.
Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
The Technical Secretariat of the Import Licensing Commission is the sole administrative body responsible for the whole registration process regarding notifications for the opening of the tariff rate quotas, and for issuing the certificates to the purchaser, stating the identity of the bidders and the terms of the negotiation on the basis of which the respective tariff rate quota is allocated.
If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
In the case of finished products, the procedure followed is a random draw for each lot
and for each purchaser. A purchaser is selected by this method and then the sellers make offers to the purchaser through a process of bidding and counter bidding until the lowest price is reached and the lots corresponding to the quota to be awarded are exhausted. In the case of raw materials the quota is allocated among the relevant processing industries that have applied for the quota on the basis of their share of the domestic market.
In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
There are no bilateral quotas or export restraint arrangements.
In cases where imports are allocated on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Export permits from the exporting countries are not required.
Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
No licences are issued on the condition that the goods should be exported and not sold in the domestic market.