WORLD TRADE  
ORGANIZATION  G/LIC/N/3/PAN/2 
4 March 2004 
 
 (04-0978) 
Committee on Import Licensing Original:   Spanish 
  
 
REPLIES TO QUESTIONNAIRE ON IMPORT LICENSING PROCEDURES 
 
Notification under Article 7.3 of the Agreement on
 
Import Licensing Procedures1 
 
PANAMA 
   The following communication, dated 2 March 2004, is being circulated at the request of the 
delegation of Panama. 
 
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I. GENERAL 
Outline of systems
 
1. The import licensing system is governed by Law No. 23 of 15 July 1997, Title III "General 
Provisions Governing the Processing of Import Licen ces issued by State Institutions" and Resolution 
No. 5 of 18 November 1998 "Regul ations Governing the Granting of Import Licences for Products 
Subject to Tariff Rate Quotas".2 
Purposes and coverage of licensing  
2. The system includes two types of licensing:  automatic import licensing, which is for 
statistical purposes, and non-automatic import licensi ng, which applies to goods that may enter the 
customs territory upon payment of an import duty lower than the normal duty. 
3. The system applies to goods origina ting in and coming from all countries. 
4. The licensing is for statistical purposes and for the administration of tariff rate quotas. 
5. The legal basis for import licensing is Law No. 23 of 15 July 1997, Title III "General 
Provisions Governing the Processing of Import Lice nces Issued by State Institutions" and Resolution 
No. 5-98 of November 1998 "Re gulations Governing the Granting of Import Licences for Products 
Subject to Tariff Rate Quotas".  The Import Licensing Commission has no authority to determine which goods will be subject to licensing, and nor can  the executive branch abolish the system without 
legislative approval, following upon the corre sponding negotiations within the World Trade 
Organization. 
                                                     
 
1 See document G/LIC/3, Annex, for the Questionnaire. 
2 Available for consultation in the Secretaria t (Market Access Division) (Spanish only). G/LIC/N/3/PAN/2 
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 Procedures
 
6. For products under restriction as to the quantity or value of imports: 
 I. 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 be gin, providing detailed information on 
the products, tariff headings, terms of deliver y, 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). 
 
 II. 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 Re public 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. 
 
 III. 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 duri ng 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 inform ation 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. 
 
IV. From the time of announcing th e opening of quotas, a period of 21 days is allowed for 
the submission of licence applications. 
V. 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. 
VI. The minimum time between th e granting of a licence and the date of opening of the 
period of importation is 72 hours, during wh ich time the contract of sale must be 
presented, in order to proceed to the actual importation of the quota. 
VII. 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 bi dders and the terms of the negotiation on 
the basis of which the respective tariff rate quota is allocated.  G/LIC/N/3/PAN/2 
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 VIII. In the case of finished products, the proce dure 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 material s 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. 
IX. There are no bilateral quotas or export restraint arrangements. 
X. Export permits from the exporting countries are not required. 
XI. No licences are issued on the condition that the goods should be exported and not sold 
in the domestic market. 
7. Where there is no quantitative limit on the importation of a product or on imports from a 
particular country: 
 (a) Licence applications must be submitted prior to the arrival of the product at the port 
of entry.  In the event that unlicensed goods  arrive at a port, an assessment of the 
health risk is carried out and, on that b asis, the goods are detained and the licence is 
granted at a later date. 
  (b) Licences are processed and issued within a period of not more than 24 hours. 
  (c) There are no limitations as to the peri od of the year during which applications for 
licence and/or importation may be made. 
  (d) The Executive Directorate of Agricultural Quarantine is the sole administrative body 
responsible for examining licence applicati ons that do not have quantitative limits. 
 
8. Apart from the ordinary criteria, there are no other circumstances on the basis of which a 
licence may be refused.  If a licence is refused, the a pplicant is informed of the reasons in writing and 
has the right to appeal against the decisi ons of the competent licensing authorities. 
 By ordinary criteria, we mean those stipulated in Panamanian Law No. 135 of 30 April 
(Organic Law on the Administrative Litigation Sy stem of 1943 as amended by Law No. 33 of 1946 
and Law No. 39 of 1954).  All of the relevant provisio ns of the Judicial Code are applicable to them. 
 
 The following government remedies are availa ble for administrative matters of a national 
character:   (a) Reconsideration by a first-instance ad ministrative 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.   If, for any reason, a licence whic h does not refer to the basic or sine qua non  requirements set 
out in point 6 concerning procedures is refused, and th e 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.  G/LIC/N/3/PAN/2 
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  If such an application is unsuccessful, the appli cant or affected party has the right to appeal 
before the Import Licensing Commission.   Once these two steps have been taken, the govern ment 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". 
 Eligibility of importers to apply for licence
 
9. All persons, firms and institutions ar e eligible to apply for licences. 
Documentational and other require ments for application for licence  
10. Sample application forms for non-automatic licences are enclosed.3  They must be submitted 
together with all the particulars of the applican t, the company, the address and the tariff items or 
products to be imported. 
11. Upon actual importation, the importer must present a copy of the duly attested customs 
clearance form and the receipt of payment. 
12. There is no licensing fee or administrative charge. 
13. There is no deposit or advance payment requirement associated with the issue of licences.  
However, in order to ensure that the goods are act ually imported, a sum equivalent to 20 per cent of 
the price quoted for each offer of purchase or sale mu st 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. 
Conditions of licensing  
14. The licence is valid for a period of 60 days from th e date of issue.  The period of validity may 
be extended if the applicant so requests. 
15. There is no penalty for the non-utilization of a licence or a portion of a licence. 
16. Licences are not transferable between importers. 
17. 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. 
Other procedural requirements  
18. There are no other administrative procedures, ap art from import licensing, required prior to 
importation. 
                                                      
3 Available for consultation in the Secretariat (Market Access Division).  G/LIC/N/3/PAN/2 
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 19. There is no restriction on obtaining foreign currency for the payment of the goods to be 
imported. 
II. NARCOTIC DRUGS AND MEDICAMENTS 
Outline of systems  
1. The importation into Panama of narcotic, controlled and restrict ed drugs is subject to import 
licensing to ensure that traders' procedures are in conformity with Panama's international obligations 
(Single Convention on Narcotic Drugs 1961 and Convention on Psychotropic Substances 1981).  
Panamanian domestic regulations also require that  the imported substances meet Panamanian medical 
and scientific requirements and that the drugs rema in in the legitimate distribution channels.  The 
importation of these drugs is covered by the Law on the Control of Medicaments and its regulations, 
and the Law on the Control of Narc otic Drugs and its regulations.4 
Purpose and coverage of licensing  
2. The prospective importers of controlled drugs (e.g. amphetami ne, methamphetamine, 
barbituric acids), narcotics (e.g. c odeine, morphine), and restricted drugs (used only for research and 
not for commercial sale) must apply for an import pe rmit.  The application must specify the supplier's 
name, country and address, and the quantity and type of drug being imported.  Companies and traders 
interested in importing such drugs must be domestically licensed to manufacture or distribute the specified narcotic, controlled or restricted drugs. 
3. The system applies to all narcotic, controlled a nd restricted drugs, regardless of their country 
of origin.  Narcotics may be imported only from countries that are party to the United Nations 
International Narcotics Convention, to which Panama is a signatory. 
4. The aim of the licensing system is to minimize the diversion of drugs, to ensure that the 
quantity of imported drugs does not exceed Panamanian medical or scientific needs and to ensure that 
Panama is able to comply with  its international commitments. 
5. The Law on the Control of Narcotic Drugs and its regulations and the Law on the Control of 
Medicaments and its regulations re quire permits for the import or e xport of  narcotic, controlled or 
restricted drugs.  This control is establishe d on the basis of international obligations. 
Procedures
 
6. For the import of products subject to restrictions: 
 I. Allocations of quotas for narcotics ar e published by the United Nations, and this 
information is provided to traders upon re quest.  Any country exporting such drugs 
can obtain information on Panamanian quotas through the United Nations 
International Narcotics Control Board.  Panama does not allocate a specific quantity 
to any country. 
  II. The quotas for narcotics are allocated annually in accordance with the requirements 
of the United Nations International Narcotics Control Board. 
 
                                                     
 
4 A summary of the National Regulations on the Control of Medicaments and Narcotic Drugs is 
available for consultation in the Secretaria t (Market Access Divisi on) (Spanish only). G/LIC/N/3/PAN/2 
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  III. Permits to import narcotic, controlled and restricted drugs are issued only to licensed 
traders, who are required to inform the Ph armacy and Drugs Bureau of the Ministry 
of Health when the import of drugs tak es place, including the quantity imported.  
Unused quantities of the allocations are cr edited back to the quota for the year. 
 
 IV. All narcotic quotas are established on an  annual basis, and an application may be 
made at any time during the year. 
  V. Import permits are issued within five work ing days of receipt of application.  In the 
case of narcotics, the same length of time applies, provided that the Panamanian 
quota has not been exhausted for the calendar year. 
  VI. Permits are issued for immediate import ation except when a trader has indicated a 
wish to import during the following calenda r year.  In such cases, the permit becomes 
valid as of 1 January of that year. 
 
 VII. All applications to import narcotic, c ontrolled and restricted drugs are reviewed by 
the Pharmacy and Drugs Bureau.  Import pe rmits are issued by the Bureau on the 
authority of the Ministry of Health. 
  VIII. Permits are issued on a first-come, first-served basis, taking into account past 
performance and security.  There is no maximum amount allocated per applicant.  
Applications are examined on receipt. 
  IX. Under Panamanian law and the interna tional estimate system of the United Nations 
International Narcotics Control Board, the narcotic, controlled and restricted drugs 
requiring import permits are also covered by  export permits issued by the competent 
authorities of the exporting country. 
  X. Not applicable.   XI. Yes. 
 
7. Where there is no quantitative limit on importa tion of a product or on imports from a 
particular country: 
 (a) The importer of controlled and restricted drugs possessing a manufacturer's or 
distributor's authorization for that drug is usually issued an import licence within 
10 working days of receipt of the applic ation.  It is effective immediately. 
  (b) All licences are granted within 10 working days of receipt of application if there is a 
legitimate medical or scientific need and ph ysical security for safe-keeping purposes. 
  (c) No.  All permits are valid for three mont hs from the date of issue.  No licence has a 
period of validity extending beyond 31 December of the year in which it was issued.  
Licences issued in November are valid only until 31 December. 
  (d) The Pharmacy and Drugs Bureau of the Mi nistry of Health is the only authority that 
an importer need contact.  The application mu st be signed by the Director-General of 
Health and the Head of the Bureau. 
 8. An application for an import licence may be re fused if a company is not licensed, if the 
product is not currently on the licence, if the security requirements are not met, if there is an  G/LIC/N/3/PAN/2 
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 insufficient quota remaining, if the importer has faile d to comply with the laws and regulations or if 
there is reason to suspect that the drug will be di verted to an illicit market.  Reasons are given for 
refusing permits. 
 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 admi nistrative litigation courts and all the provisions 
established by the Judicial Code in that regard shall be applicable to them". 
 Eligibility of importers to apply for licence
 
9. Licences to import or export narcotic, controlled or  restricted drugs are limited to companies 
authorized to manufacture or distribute such drugs in Panama.  A list of such companies is published 
at least once each year and revisions are publishe d more frequently.  There is no licensing fee.  
However, authorizations are subject  to a fee and other requirements. 
Documentational and other require ments for application for licence  
10. Applications for permit to import narcotic and controlled drugs. 
11. Export permit from the exporting country. 
12. Yes.  B 10.00 
13. No. 
Conditions of licensing  
14. One year.  The period of validity may be extended if the applicant so requests. 
15. No. 
16. No. 
17. (a) Yes, submission of quarterly and annual reports. 
 (b) Yes, submission of quarterly and annual reports. Other procedural requirements
 
18. No, provided that the company is currently li censed to manufacture or distribute such drugs 
and can provide the security necessary for storage. 
19. Not applicable. 
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