WORLD TRADE
ORGANIZATIONG/LIC/N/3/PAN/1
17 February 1999
(99-0090)
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 22 January 1999, has been received from the Permanent
Mission 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 Licences issued by State Institutions" and Resolution
No. 2 of 19 September 1997 "Regulations 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 licensing, which is for statistical
purposes, and non-automatic licensing, which applies to goods that can enter the customs territory by
paying an import duty lower than the normal duty.
3. The system applies to goods originating 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 Licences Issued by State Institutions" and Resolution
No. 2 of 19 September 1997 "Regulations Governing the Granting of Import Licences for Products
Subject to Tariff Rate Quotas".  The Import Licensing Commission has no authority to designate
which goods will be subject to licensing, and nor can the executive branch abolish the system withoutlegislative approval, following the corresponding negotiations within the World Trade Organization.
                                                     
1 See document G/LIC/3, Annex, for the Questionnaire.
2 Available for consultation in the Secretar iat (Market Access Division) (Spanish only).G/LIC/N/3/PAN/1
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Procedures
6. For products under restriction as to the quantity or value of imports:
I. Notices are published in two (2) newspapers with national circulation, in three
(3) editions on different days at least twenty-one (21) calendar days prior to the date
on which the corresponding negotiating rounds are due to begin, providing detailedinformation 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).
II. The size of the quotas is determined on a yearly basis.  For 1997, import licences for
quotas were allocated for the last four months of the year, on account of the fact thatthe Republic of Panama had become a permanent Member of the WTO as of
6 September 1997.  Importers have to 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 will have the
opportunity to 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 can be added to the quota of the
immediately succeeding period.  This rule of accumulation will apply for periodswithin 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 theproducts in the specified period and the rights arising from such importation.  The
relevant public authorities will provide, following a request from 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.
IV. From the time of announcing the opening of  quotas, a period of 21 (twenty one) days
is allowed for the submission of applications for licences.
V. The maximum and minimum lengths of time for processing applications are within
the period of 21 (twenty one) days from the announcement of the opening of quotas.
VI. The minimum time between the granting of a licence and the date of opening of the
period of importation is 72 (seventy-two) hours, during which 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 tothe 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.G/LIC/N/3/PAN/1
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VIII. 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 relevantprocessing 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.  Export permits from
the exporting countries are not required.
X. Export permits from the exporting countries are not required.
XI. No licences are issued on condition that goods should be exported and not sold in the
domestic market.
7. Where there is no quantitative limit on importation of a product or imports from a particular
country:
(a) Applications for a licence must be submitted prior to the arrival of the product at the
port of entry.  In the event of goods arriving at the port without a licence, the health
risk is assessed and, on that basis, the goods are detained and the licence is granted ata 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 period of the year during which application for
licence and/or importation may be made.
(d) The Executive Directorate of Agricultural Quarantine is the sole administrative body
responsible for examining licence applications 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.  In the case of refusal of  a licence the applicant must be informed of the
reasons in writing and has the right to appeal against the decisions of the competent licensing
authorities.
When we refer to the ordinary criteria, we are referring to those stipulated in our 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), and all of th e 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 before a first-instance administrative officer with a view to
clarification, modification or revocation of the resolution;
(b) appeal before his immediate superior for the same purposes.G/LIC/N/3/PAN/1
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If for any reason a licence which does not refer to the basic or sine qua non  requirements
established 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 application does not succeed, the applicant or affected party has the right to appeal the
case 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".
Eligibility of importers to apply for licence
9. All persons, firms and institutions are eligible to apply for licences.
Documentational and other requirements for application for licence
10. Sample application forms for automatic and non-automatic licences are enclosed.  They must
be submitted together with all the particulars of th e applicant, the company, the address and the tariff
items or products to be imported.3
11. Upon actual importation the importer must present a copy of the customs clearance form duly
attested 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 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 awar ded, the import of the products in the specified
period and the rights arising from such importation.
Conditions of licensing14. The licence is valid for a period of 60 (sixty) days from the 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.
                                                     
3 Available for consultation in the Secretariat (Market Access Division).G/LIC/N/3/PAN/1
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Other procedural requirements
18. There are no other administrative procedures, apart from import licensing, required prior to
importation.
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 restricted drugs is subject to import
licensing to ensure that dealers' 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 substance meets Panamanian medical
and scientific requirements and that the drugs remain in the legitimate distribution channels.  Theimportation of these drugs is covered by the Law on the Control of Medicaments and its regulations,
and the Law on the Control of Narcotic Drugs and its regulations.
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Purpose and coverage of licensing
2. The prospective importers of controlled drugs (e.g. amphetamine, methamphetamine,
barbituric acids), narcotics (e.g. codeine, morphine), and restricted drugs (used only for research, notcommercial sale) must apply for an import permit.  The application must specify the supplier's name,
country and address, and the quantity and type of drug being imported.  Prospective importers of such
drugs must be firms (dealers) domestically licensed to manufacture or distribute specified narcotic,
controlled or restricted drugs.
3. The system applies to all narcotic, controlled and restricted drugs from all countries.  Imports
of narcotics are made only from countries which are party to the International Narcotic Convention of
the United Nations, to which Panama is a signatory.
4. The licensing is intended to minimize the diversion of drugs and to ensure that the quantity of
drugs imported does not exceed Panamanian medical or scientific needs and 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 require permits for the import or export of a narcotic, controlled or
restricted drug.
Procedures
6. For the import of products subject to restrictions:
I. Allocations of quotas for narcotics are published by the United Nations, and this
information is provided to dealers upon request.  Any nation exporting these drugsmay obtain information on Panamanian quotas through the United Nations
International Narcotics Control Board.  Panama does not allocate a specific quantity
to any country.
                                                     
4 A summary of the National Regulations on the Control of Medicaments and Narcotic Drugs is
available for consultation in the Secretar iat (Market Access Division) (Spanish only).G/LIC/N/3/PAN/1
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II. The quotas for narcotics are allocated annually in accordance with the requirements
of the United Nations International Narcotics Control Board.
III. Permits to import narcotic, controlled and restricted drugs are only issued to licensed
dealers, who are required to inform the Pharmacy and Drugs Bureau of the Ministryof Health when the import of drugs takes place, including the quantity imported.
Unused quantities of the allocations are credited 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 working days of receipt of application.  In the
case of a narcotic, the same length of time applies provided the Panamanian quota has
not been exhausted for the calendar year.
VI. Permits are issued for immediate importation except when a trader has indicated that
he wishes to import during the following calendar year.  In that case, the permitbecomes valid as of 1 January of that year.
VII. All applications to import narcotic, cont rolled and restricted drugs are reviewed by
the Pharmacy and Drugs Bureau.  Import permits are issued by the Bureau on the
authority of the Ministry of Health.
VIII. Permits are issued on the basis of first-come, first-served, past performance and
security.  There is no maximum amount allocated per applicant.  Applications are
examined on receipt.
IX. Under Panamanian law and the international estimate system of the International
Narcotics Control Board of the United Nations, 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 importation 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 licence for that drug is usually issued an import permit within
ten working days of receipt of the application.  It is effective immediately.
(b) All permits are granted within ten working days of receipt of application if there is a
legitimate medical or scientific need, physical security for safe-keeping purposes.
(c) No.  All permits are valid for three months from the date of issue and none extends
beyond 31 December of the year in which they were issued.  Permits issued in
November are valid until 31 December only.
(d) Pharmacy and Drugs Bureau of the Ministry of Health is the only authority an
importer need contact.  The application must be signed by the Director-General of
Health and the Head of the Bureau.G/LIC/N/3/PAN/1
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8. An application for an import permit can be refused if a company is not licensed, if the product
is not currently on the licence, if the security provid ed would be inadequate, if there is an insufficient
narcotic quota remaining, if there has been non-compliance with the laws and regulations by the
importer or if there is reason to suspect that there will be diversion of the drug to an illicit market.
Reasons are given for refusing permits.
9. Article 139, Title III of La w 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 judicial-administrative process and all the provisions
established by the legal code in that regard shall be applicable to them".
Eligibility of importers to apply 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.  It may be extended upon application.
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 the company is currently licensed to manufacture or distribute such drugs and
can provide the security necessary to store the drug.
19. Not applicable.
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