WORLD TRADE  
ORGANIZATION  G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 
G/SG/N/1/PAN/2/Suppl.1 
28 January 2009 
 
 (09-0397) 
Committee on Anti-Dumping Practices Committee on Subsidies and Countervailing Measures 
Committee on Safeguards Original:   Spanish 
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS 
 
NOTIFICATION OF LAWS, REGULATIONS AND ADMINISTRATIVE 
PROCEDURES RELATING TO SAFEGUARD MEASURES 
 
PANAMA 
 
Supplement
 
   The following communication, dated 16 January 2 009, is being circulated at the request of the 
delegation of Panama. 
 
_______________ 
 
  The Republic of Panama, pursuant to Article  18.5 of the Agreement on Implementation of 
Article VI of the General Agreement on Tari ffs and Trade 1994 (Anti-Dumping Agreement), 
Article 32.6 of the Agreement on Subsidies and Countervailing Measures and Article 12.6 of the 
Agreement on Safeguards, as well as the rela ted decision adopted by the Committee on 
Safeguards (G/SG/N/1), hereby notifies its la ws and regulations relating to anti-dumping, 
countervailing duty and sa feguard procedures. 
 
 In this connection, a copy is herewith subm itted of Executive Decree No. 1 of 8 January 2009 
"Regulating Decree Law No. 7 of 15 February 2006,  which establishes rules for the protection and 
safeguarding of national production and enac ting other provisions", published in the Gaceta Oficial 
(Official Journal) No. 26.201 of 14 January 2009. G/ADP/N/1/PAN/2/Suppl.1 
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  REPUBLIC OF PANAMA 
 
MINISTRY OF TRADE AND INDUSTRY 
 
EXECUTIVE DECREE No.1 
 
(of 8 January 2009) 
 
"Regulating Decree Law No. 7 of 15 February 200 6, which establishes rules for the protection 
and safeguarding of national produc tion and enacting other provisions" 
 
THE PRESIDENT OF THE REPUBLIC 
 
in exercise of his constitutional and legal powers, 
 
WHEREAS: 
  Decree Law No. 7 of 2006 establishes rules,  investigation procedures and measures 
applicable to the protection and safeguarding of na tional production against unfair trade practices and 
against market situations that require emergency measures to counteract serious or material injury 
caused to national production, in accordance with  the relevant provisions of the World Trade 
Organization, international trade agreements, c onventions or treaties and domestic legislation; 
  It is necessary to regulate Decree Law No. 7 of 2006 in order to ensure the effective and 
timely implementation of the instruments safeguardi ng trade, to contribute towards the development 
of domestic production sectors, to foster the comp etitiveness and modernization of Panama's industry 
and to maintain a stable environment for business and fair competition;   Article 102 of Decree Law No. 7 of 2006 provi des that the Executive Body, through the 
Ministry of Trade and Industry, shall issue the regulations for the Decree Law and shall adopt the 
provisions it deems most suitable for its implementation; 
  Article 184, paragraph 14, of the Political  Constitution provides that it shall be the 
responsibility of the President of the Republic, togeth er with the competent minister, to regulate those 
laws that so require for their proper implementation, without departing from the letter or spirit of the 
law; 
 
HEREBY DECREES: 
 
TITLE I 
 
MEASURES TO SAFEGUARD TRADE 
 
CHAPTER I 
 
LEGAL REGIME 
 
Article 1.  Object and purpose.   The purpose of this Executive Decree is to establish mechanisms 
and procedures to safeguard trade against unfair tr ade practices and against market situations that 
require the application of safeguard measures.  In cases of unfair practices, these mechanisms and 
procedures shall allow the dumping or subsidies th at are causing or threatening to cause material  G/ADP/N/1/PAN/2/Suppl.1 
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  injury to the domestic industry of like products to be counteracted.  In the case of safeguards, they 
shall allow the import of goods in such quantities or  under such conditions as to cause or threaten to 
cause serious injury to the domestic industry produc ing like or directly competitive products to be 
counteracted. 
 Article 2.  Scope.   In implementation of Article 2 of Decree Law No. 7 of 2006, the provisions of this 
Executive Decree shall apply to all imports of goods originating in and/or coming from countries Members of the World Trade Organization or non-me mber countries by public or private natural or 
legal persons, in fact or in law, when such imports  generate or may generate  effects or consequences 
in the Republic of Panama.  Article 3.  Regulations applicable and suppletory legislation.  All substantive and procedural 
aspects not regulated in this Executive Decree and relating to investigations for the purpose of 
applying measures against unfair trade practices or imposing safeguard measures shall be determined 
in accordance with the provisions of Article 95 of  Decree Law No. 7 of 2006 and the relevant 
provisions contained in Law No. 23 of 1997.  Article 4.  International trade agreements, conventions or treaties.   Where imports subject to 
investigation originate in a country with which th ere are special provisions in this respect under an 
international trade agreement, convention or treaty in force, the measures regulated in this Executive 
Decree shall be applied in accordance with the provisions of the aforesaid treaty. 
 Article 5.  Competence.   The provisions of this Executive Decree shall be implemented, as 
appropriate, by the following: 
 
(a) The Directorate-General for Safeguarding Trade in the Ministry of Trade and 
Industry.  The investigating authority responsible for handling and conducting 
investigations and taking any steps needed to ensure the proper application of the 
administrative procedures laid down in th is Executive Decree.  For this purpose, it 
may decide on the measures and/or formalities required.  It shall also be responsible 
for preparing and presenting the technical  reports, determinations, findings and 
recommendations underpinning the resolutions of the competent authority. 
(b) The National Directorate for the Implementation of International Trade Agreements 
and Safeguarding Trade in the Ministry of Trade and Industry.  The authority 
responsible for receiving requests for the initiation of administrative investigations 
regulated by this Executive Decree.  Likewise, and pursuant to the recommendations 
of the Investigating Authority, it shall be responsible for issuing resolutions arising from proceedings at the lower level, incl uding decisions on initiating proceedings, the 
preliminary resolution, the acceptance of pr ice undertakings, the final resolution and 
other similar decisions. 
(c) Minister for Trade and Industry.  The Minister shall be responsible for higher level 
proceedings, appeals against resolutions  by the National Directorate for the 
Implementation of International Trade Agre ements and Safeguarding Trade, and for 
transmitting recommendations to the Cabine t Council concerning the imposition of 
measures, their amendment, termination or any other decision relating thereto, pursuant to the provisions laid down in Decree Law No. 7 of 2006. 
(d) Cabinet Council.  On the basis of recomme ndations made by the Ministry of Trade 
and Industry, it shall be r esponsible for examining the imposition of measures, their G/ADP/N/1/PAN/2/Suppl.1 
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  amendment, termination and any other deci sion related thereto, taking into account 
the technical, substantive and procedural aspects of the administrative investigations established by Decree Law No. 7 of 2006. 
Article 6.  Territorial jurisdiction.  The provisions of this Executive Decree are public policy 
provisions applicable throughout the Republic of Panama.  For administrative purposes, the 
Executive Body, through the Ministry of Trade and Industry, shall be responsible for implementing 
these provisions.  
Article 7.  Proceedings and period of the investigation.   Pursuant to Articles 25 and 63 of 
Decree Law No. 7 of 2006, all stages of the admini strative investigation shall proceed ex officio and 
shall be in accordance, inter alia , with the procedural principles of promptness, efficiency, publicity, 
impartiality and avoiding excessive formality.  
 Investigations regulated herein, whether on unfair trade practices or safeguards, shall be 
concluded less than one year from the date of th e resolution on initiation of  an investigation.  
Nevertheless, in exceptional circumstances, this  period may be extended up to a maximum of 
eighteen months by means of a justified resolution by the Investigating Authority to be attached to the 
file and notified to the parties prior to expiry of the initial period.  
TITLE II 
 
COMMON SUBSTANTIVE RULES ON UNFAIR TRADE PRACTICES 
 
CHAPTER I 
 
GENERAL PROVISIONS 
 Article 8.  Definitions and terms.   For the purposes of this Executive Decree, the following 
definitions apply:  
(a) Injury:  Material injury means injury cau sed to a domestic industry or threat of 
material injury to a domestic industry, or ma terial retardation of the establishment of 
such a domestic industry;  and this term sh all be interpreted pursuant to the provisions 
of this Executive Decree and Law No. 23 of 1997. 
(b) Dumping:  A product shall be considered as dumped when it is introduced into the 
domestic market as indicated in Article 4.8 of Decree Law No. 7 of 2006 at a price 
less than its normal value.  This shall be considered to have occurred if the export 
price of the said product exported to the domestic market is less than the comparable price in the ordinary course of trade for a like product when destined for consumption 
in the exporting country, taking into account the alternatives indicated in Law No. 23 of 1997 regarding determination of the existence of dumping. 
(c) Non-market economies or economies in tran sition.  Any national economy in which 
the government determines economic activity mainly through a central planning mechanism, unlike a market economy, whic h basically depends on market forces for 
the allocation of production resources.  In  a "non-market" economy, the goals of 
production, prices, costs, allocation of investment, raw materials, labour, international 
trade and the majority of other economic factors are distorted under a national 
economic plan formulated by a central planning authority in which the public sector  G/ADP/N/1/PAN/2/Suppl.1 
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  usually takes the most important decisi ons affecting supply and demand in the 
domestic economy.  Economies that corres pond to a system traditionally known as 
"economies in transition" may also be considered as non-market economies. 
(d) Related enterprises.  Persons or entities, whether or not independent, among which 
there are or exist links or relations of bu siness or common interests, whether or not 
contractual or a partnership, and related through aspects such as capital, administration, family or other relations, wh ich allow one or more persons to exercise 
a decisive influence on the decisions of the others.  The relationship or link may exist 
between domestic or foreign producers, e xporters or importers or any other economic 
agent.  A link or relationship may be deemed to exist when (a) one of them directly or 
indirectly controls the other;  (b) both of them are directly or indirectly controlled by a third person;  or (c) together they dir ectly or indirectly control a third person, 
provided that there are grounds for believing or suspecting that the effect of the 
relationship is such as to cause the economic  agent concerned to behave differently 
from non-related entrepreneurs.  For the purpo ses of this definition, a person shall be 
deemed to control another when the former is legally or operationally in a position to 
exercise restraint or direction over the latter. 
(e) Enterprises linked or related for the purpo ses of circumvention.  The Investigating 
Authority may also consider related or  linked those enterprises which act through 
new business arrangements in order to circum vent the application of measures against 
unfair trade practices so that it shall be deemed that there is a relationship between the former and the latter. 
(f) Facts available.  Pursuant to Article 4.10 of Decree Law No. 7 of 2006, those facts 
substantiated by evidence and data provided by the interested parties or additional 
parties in a proper and timely fashion,  and the information gathered by the 
Investigating Authority during the course of the investigation and contained in the administrative file. 
(g) Interested parties.  This covers the following: 
(i) The government of the country or customs territory of export of the product 
under investigation or the government of the country or customs territory of 
origin of the product under investigation; 
(ii) domestic producers or trade, industria l or agricultural associations the 
majority of whose members are domestic producers of like products in the case of investigations into dumping or subsidies and including directly competitive products in the case of investigations for the purpose of applying 
safeguards; 
(iii) foreign producers and/or exporters a nd domestic importers of the product 
under investigation and trade, industrial or agricultural associations the majority of whose members are domestic importers, foreign producers or exporters; 
(iv) other interested parties determined by  the competent authority, for which 
purpose it shall take into account the existence of a legitimate interest or G/ADP/N/1/PAN/2/Suppl.1 
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  subjective right that may be directly affected, impaired or satisfied as a result 
of the administrative investigation. 
(h) Investigation period.  The period of time  for collecting and offering data for the 
corresponding examination of each of the various aspects in the investigation.  
Without prejudice to the Investigating Authority taking into account special circumstances and determining a different in vestigation period, the following periods 
shall be determined for gathering data: 
(i) Period for investigation of injury.  The period for collecting data in 
investigations for the purpose of establishing the existence of injury shall 
normally be at lease three years, unless the party in respect of which data are being compiled has existed for a lesser period, and shall include the entirety of the period for data collection for the investigation into dumping or subsidies; 
(ii) period of investigation into dumping or subsidies.  The period for collecting 
data for the purpose of investigation into the existence of dumping or subsidies shall normally be 12 months, and under no circumstances less than six months, and shall end on the date as close as possible to the date of initiation of the investigation. 
(i) Foreign producer.  Any natural person, entity  in fact or in law, whether public or 
private, engaged in any form of econom ic production activity, acting on their own 
behalf or on behalf of another, as a fo reign manufacturer of a product like the product 
under investigation. 
(j) Domestic producer.  Any natural person, entity in fact or in law, whether public or 
private, engaged in any form of econom ic production activity, acting on their own 
behalf or on behalf of another, as a Panamanian manufacturer of goods like the 
product under investigation. 
(k) Price undercutting.  The amount by which th e price of the imported product is less 
than the price of the like product produced by the industry, measured at an appropriate point of comparison. 
Article 9.  Domestic industry.   Domestic producers as a whole of like products or those of them 
whose collective output constitutes a major propor tion of the total domestic production of those 
products.   Where the Investigating Authority determines th at one or more producers are related to the 
exporters or importers or are th emselves importers of the product concerned by the application for 
investigation, this term may be interpreted as re ferring to the remainder of the producers, without 
expressly specifying those that are related.   In exceptional circumstances, the concept of dome stic industry may be restricted to part of the 
territory of the Republic of Panama and, for th e purposes of the production in question, may be 
divided into two or more competing markets and the producers within each market may be regarded 
as a separate industry if:  (a) the producers within such  market sell all or almost all of their production 
of the product in question in that market, and (b) th e demand in that market is not to any substantial 
degree supplied by producers of the product in questi on located elsewhere in the territory.  In such  G/ADP/N/1/PAN/2/Suppl.1 
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  circumstances, injury may be found to exist even  where a major portion of the total domestic industry 
does not suffer prejudice if there is a concentration of the imports that are the subject of the unfair 
practice in that isolated market and the imports that are the subject of the unfair practice are causing 
injury to the producers of all or almost all of the production within such market. 
  When the "domestic industry" has been interp reted as referring to the producers in a certain 
area of the national territory, the measures shall be applied to all imports irrespective of their final 
destination if there are no domestic mechanisms a llowing it to be determined with precision whether 
the imported products are intended for that area or not.   In such cases, measures may only be applied 
if the exporters have been give n an opportunity to cease exporting at distorted prices to the area 
concerned or otherwise give assurances regarding compliance with price undertakings and if the 
measures cannot be levied only on the products of specific producers which supply the area in 
question. 
 
Article 10.  Product investigated.   The product exported regarding which the existence of an unfair 
practice causing injury to the domestic industry is claimed.  Article 11.  Like product.   Pursuant to Article 4.16 of Decr ee Law No. 7 of 2006, this means a 
product that is identical, in other words, alike in  all respects to the produc t investigated.  If the 
examination of similarity leads to a determination th at there is no identical product, another product 
which, although not alike in all respects, has char acteristics closely resembling those of the product 
investigated shall be considered a like product.  In  examining similarity, the Investigating Authority 
may take into account:  
(a) The raw materials and other inputs used in producing the product; 
(b) the production process; 
(c) the physical characteristics and appearance of the product; 
(d) the end-use of the product; 
(e) the substitutability of the product with  the product under investigation; 
(f) the tariff classification;  and/or 
(g) any other factor deemed relevant by the Investigating Authority. 
 No one of these factors by itself or several of them together necessarily gives decisive 
guidance.  Article 12.  Examination of similarity.  The product under investigation shall be subject to 
two separate examinations for the purpose of comp aring similarity and these shall be undertaken on 
the basis of the criteria defined in the preceding Artic le.  The first examination shall be undertaken in 
order to determine the margin of dumping and sh all consist of a comparison between the product 
under investigation and the like product in the market of the exporting country.  The second 
examination shall make a comparison between the product under investigation and the like domestic 
product.  This examination of similarity shall be used  to define the concept of interested parties, in 
addition to any other purpose contained in this Executive Decree. 
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  CHAPTER II 
 
INJURY 
 
Article 13.  Determination of material injury.   Determination of material injury shall be based on 
positive evidence and involve an objective examination of:  (1) the trend in the volume of the imports 
that are the subject of unfair trade practices and their effect on the price of like products on the domestic market;  and (2) the impact of these impor ts on domestic producers of such products, taking 
into account the provisions in the preceding Article. 
 
(a) In order to undertake the objective examina tion of the trend in the volume of imports, 
the Investigating Authority shall consider whether or not there has been a significant 
increase in imports subject to unfair trad e, as well as whether there has been an 
increase in imports subject to unfair trade as compared with domestic production or 
consumption.  When examining the impact of the imports subject to unfair practices on prices, the Investigating Authority sh all consider whether there has been 
significant price undercutting by the imports subject to unfair practices as compared with the price of a like domestic product or whether the effect of such imports is otherwise to depress prices to a significant degree or prevent price increases which 
otherwise would have occurred to a significant degree. 
(b) In determining the impact of the imports s ubject to unfair practices on the domestic 
industry, an evaluation shall be undertaken  of all relevant economic factors and 
indices having a bearing on the state of the industry during the period of investigation 
into injury referred to in Article 8(h) of this Executive Decree, including at least the 
following: 
(i) Actual and potential decline in: 
(1) Sales, 
(2) Profits, (3) Output, (4) Market share, 
(5) Productivity, 
(6) Return on investments or utilization of capacity; 
 
(ii) Factors affecting domestic prices; 
(iii) Actual or potential negative effects on: 
(1) Cash flow, 
(2) Inventories, (3) Employment, (4) Wages, (5) Growth, (6) Ability to raise capital or investments; 
 
(iv) Any other relevant factor submitted for the consideration of the Investigating 
Authority; 
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  (v) in the special case of dumping, the amo unt of the dumping margin shall also 
be taken into account; 
(vi) in the special case of agricultural s ubsidies, whether there has been an 
increase in the cost of government support programmes may also be taken 
into account; 
(vii) as far as possible, the Investigating Au thority shall examine these factors on 
the basis of information on the lik e domestic product where possible.  
Nevertheless, where such identifica tion cannot be made separately, the 
Investigating Authority shall examine the impact of the imports subject to 
unfair practices taking into account the data concerning a more limited group 
or range of products which include th e like domestic product and in respect 
of which the necessary information can be provided. 
 This list is not exhaustive and no one of these factors by itself or several of them together 
necessarily gives decisive guidance. 
 Article 14.  Determination of the threat of material injury.   For the purposes of this Executive 
Decree, dumping or subsidies shall only be considered  to constitute a threat of material injury when 
the change in circumstances which would create a situation in which the dumping or subsidy would 
cause material injury is clearly foreseen and imminent .  Determination of the existence of a threat of 
material injury shall be based on facts and not mere ly on allegation, conjecture or remote possibility.  
In determining whether the dumping or subsidy thr eatens to cause material injury, in addition to 
examining the relevance of the factors needed to determine the existence of injury provided in the 
preceding Article, the following factors shall also be taken into account:  
(a) Whether there has been a significant rate of increase of the dumped or subsidized 
imports into the domestic market indicating the likelihood of substantially increased importation of these goods; 
(b) whether there is sufficient freely disposable  or an imminent, substantial increase in 
capacity of the exporter indicating the likelihood of substantially increased dumped or subsidized exports, taking into account the availability of other export markets to 
absorb any additional exports; 
(c) whether imports are entering the domestic ma rket at prices that will have a significant 
depressing or suppressing effect on domestic pr ices for like products and with likely 
increased demand for further imports of such goods; 
(d) inventories of the product being investigated; 
(e) evidence that the authorities in a foreign country are imposing anti-dumping measures 
or countervailing duties on goods like t hose under investigation and the likelihood 
that these goods are being diverted to the Panamanian market; 
(f) in the special case of subsidies, their nature and the possible trade effects;  in order to 
determine their nature, aspects such as th eir duration, their amount or the group of 
exporters they cover may be taken into account. 
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   This list is not exhaustive and no one of these factors by itself or several of them together 
necessarily gives decisive guidance.  
Article 15.  Determination of retardation of  the establishment of a domestic industry.  In order to 
determine material retardation of the establishment of a domestic i ndustry in the Republic of Panama, 
the following factors, inter alia , shall be taken into account: 
 
(a) Feasibility studies, loans negotiated and/or contracts for procurement of machinery 
related to new investment project s or expansion of existing plant; 
(b) the existence of dumped or subsidized im ports and the causal relationship between 
the existence of the unfair practice and the ma terial retardation in the establishment of 
a domestic industry; 
(c) the appropriate and adequate supply of th e market, taking into account the volume of 
the imports at distorted prices, the volume of  other imports and the potential output of 
the project; 
(d) any other relevant factor, taking into account the circumstances, including the 
individual overall business plan of the privat e or public sector showing retardation in 
the establishment of the domestic industry. 
 This list is not exhaustive and no one of these factors by itself or several of them together 
necessarily gives decisive guidance. 
 Article 16.  Cumulative assessment of the impact of the imports.   In order to ensure proper 
compliance with Article 3.3 of the Anti-Dumping Agreement and Article 15.3 of the Agreement on 
Subsidies and Countervailing Measures, the Invest igating Authority alone may make a cumulative 
assessment of the impact of imports of a product from more than one country that are simultaneously 
subject to investigations into unfair trade practices if it determines that:  (a) the margin of dumping or 
the amount of the subsidy established in relation to  the imports from each supplier country is more 
than de minimis  and the volume of imports from each country  is not negligible;  and (b) a cumulative 
assessment of the effects of the imports in the light of the conditions of competition between the 
imported products and the like domestic product is needed. 
 
CHAPTER III
 
 
CAUSAL RELATIONSHIP 
 
Article 17.  Determination of the existence of a causal relationship.   For the purposes of unfair 
practice (dumping or subsidies), it shall be proven that the imports that are the subject of the said unfair practice are causing material injury.  Proof of a causal relationship be tween the imports subject 
to unfair practices and the material injury caused  to the domestic industry shall be based on an 
examination of all relevant evidence ava ilable to the Investigating Authority. 
 
Article 18.  Non-attribution.  The Investigating Authority shall also examine any known factors 
other than the imports subject to unfair practices, which are at the same time injuring the domestic 
industry, and the injuries caused by these other factors shall not be attributed to the imports subject to 
unfair practices.  Factors which may be relevant in this respect include, inter alia , the volume and 
price of imports not sold under conditions of unfai r practices, contraction in demand, changes in the  G/ADP/N/1/PAN/2/Suppl.1 
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  pattern of consumption, developments in tec hnology and the export performance of the domestic 
industry.  
 Where, after having assessed the impact of these other non-attributable factors and after 
having eliminated their impact on injury, the Invest igating Authority finds that imports of the product 
under investigation continue to be a cause of injury, it  may conclude that there is a causal relationship. 
 
TITLE III 
 
SPECIAL SUBSTANTIVE RULES ON UNFAIR TRADE PRACTICES 
 
CHAPTER I 
 
DUMPING 
 Article 19.  Normal value.  As a first option, the normal value shall be determined on the basis of the 
price of the like product or good destined for c onsumption in the exporting country in the ordinary 
course of trade.  
 As an alternative, when there are no sales of the like product in the ordinary course of trade in 
the domestic market of the exporting country or when , because of the particular market situation or 
the low volume of sales in the domestic market in the exporting country, such sales do not permit a proper comparison, the normal value shall be determined using one of the following methods: 
 
(a) By constructing the price based on the cost of  producing the product in the country of 
origin, plus a reasonable amount for admini strative, selling and general costs and for 
profits;  or 
(b) by comparison with a comparable price of the like product when exported to an 
appropriate third country, provided th at this price is representative. 
Paragraph:  Sales of the like product destined for c onsumption in the domestic market of the 
exporting country shall normally be considered a sufficient quantity for the determination of the 
normal value if such sales constitute five per cent (5%) or more of the sales of the product under 
consideration to the importing Member;  nevertheless, a lower ratio may be acceptable where the evidence demonstrates that domestic sales are none theless of sufficient magnitude to provide for a 
proper comparison. 
 
Article 20.  Ordinary course of trade.   Those transactions which reflect the habitually prevailing 
market conditions of the country of origin or e xport of the goods over a representative period between 
independent buyers and sellers , taking into account the adjustments corresponding to prices for 
reasons of commercial level of sales, discounts or other similar factors in accordance with Article 25 
of this Executive Decree.  Sales of the like product in the domestic market of the exporting country or 
sales to a third country at prices below per unit (fixed and variable) costs of production plus 
administrative, selling and general costs may be treated  as not being in the ordinary course of trade by 
reason of price and may be disregarded in determ ining the normal value only if the Investigating 
Authority determines that such sales are made with in an extended period of time in substantial 
quantities and are at prices that do not provide for th e recovery of all costs within a reasonable period 
of time.  If prices that are below per unit costs at the time of sale are above weighted average per unit 
costs for the period of investigation, such prices sha ll be considered to provide  for recovery of costs 
within a reasonable period of time. G/ADP/N/1/PAN/2/Suppl.1 
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Paragraph:   (a) The extended period of time should norma lly be one year but shall in no case be less 
than six months;  (b) sales below per unit costs are made in substantial quantities when the authorities 
establish that the weighted average selling price of the transactions under consideration for the 
determination of the normal value is below the weight ed average per unit costs, or that the volume of 
sales below per unit costs represents not less than twenty per cent (20%) of the volume sold in 
transactions under consideration for the determination of the normal value. 
 
Article 21.  Alternative method for determin ing the normal value:  price construction.   For the 
purposes of Article 19 of this Executive Decree, wh en calculating normal value by means of price 
construction, the costs shall normally be calculated on the basis of records kept by the exporter or 
producer under investigation, provided that such  records are in accordance with the generally 
accepted accounting principles of the exporting countr y and reasonably reflect the costs associated 
with the production and sale of the product under c onsideration.  The Investigating Authority shall 
consider all available evidence on the proper alloca tion of costs, including that which is made 
available by the exporter or producer in the course of the investigation, provided that such allocations 
have been historically utilized by the exporter or  producer, in particular in relation to establishing 
appropriate amortization and depreciation periods and allowances for capital expenditures and other 
development costs.  Unless already reflected under the cost allocations in this section, costs shall be 
adjusted appropriately for those non-recurring items of cost which benefit future and/or current 
production or for circumstances in which costs duri ng the period under investigation are affected by 
start-up operations.   When determining the normal value, the amount s for administrative, selling and general costs 
and for profits shall be based on actual data pertai ning to production and sales in the ordinary course 
of trade of the like product by the exporter or producer under investigation.   When such demands cannot be determined on this basis, they may be determined on the 
basis of:  
(a) The actual amounts incurred and realized by the exporter or producer in question in 
respect of production and sales of the same general category of product in the domestic market of the country of origin; 
(b) the weighted average of the actual amount incurred and realized by other exporters or 
producers subject to investigation in r espect of production and sales of the like 
product in the domestic market of the country of origin; 
(c) any other reasonable method, provided that the amount of profit so established does 
not exceed the profit normally realized by other exporters or producers on sales of products of the same general category in the domestic market of the country of origin. 
Paragraph:  The adjustment made for start-up operations shall reflect the costs at the end of the 
start-up period or, if that period extends beyond the peri od of investigation, the most recent costs that 
can reasonably be taken into account by the authorities during the investigation. 
 Article 22.  Alternative method for determinin g normal value:  sales to a third market.  In those 
cases in which the normal value cannot be determin ed in accordance with the first paragraph of 
Article 19 above and it is decided to use as an alte rnative method sales to a foreign third market, the 
Investigating Authority shall disregard whether such sales are not in the ordinary course of trade and 
are not the subject of dumping.  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
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 Selection criteria.  The Investigating Authority shall be  responsible for selecting the third 
market without prejudice to suggestions that might be made by the interested pa rties for this purpose.  
In order to make this selection, the Investigati ng Authority may take into account aspects such as the 
following in addition to other criteria for guidance:  the size of the market, the existence of a domestic 
industry in the country concerned, the similarity of  the products exported to the third country and the 
product subject to investigation, the volume exporte d and other factors that also allow it to be 
determined that there is a sufficient degree of similarity to consider that such sales will permit an 
equitable comparison. 
 Article 23.  Export price.   The price actually paid or payable for the good or product when it is sold 
in or destined for the national territory.  In cases where there is no export price or where it appears to 
the Investigating Authority that the export pri ce is unreliable because of association or a 
compensatory arrangement between the exporter and the importer or a third party, the export price 
may be constructed on the basis of the price at wh ich the imported products are first resold to an 
independent importer;  if the products are not resold  to an independent buyer or not resold in the 
condition as imported, the price may be constructed on a reasonable basis.  In constructing the export 
price, adjustments shall be made to allow it to be determined as though the prior transactions had 
taken place in the ordinary course of trade, in accordance with the rules la id down in the following 
Articles. 
 Article 24.  Margin of dumping .  In order to determine the margin of dumping, the Investigating 
Authority shall make a fair comparison in acc ordance with the provisions of Article 9 of 
Decree Law No. 7 of 2006, determining the differen ce between the normal value of the like product in 
the exporting country in the ordinary course of trade and the export price, in proportion to the export 
price.  Where more than one product that are not like products are subject to investigation and they 
affect the same domestic industry, separate ca lculations shall be ma de and individual dumping 
margins determined for each of them, even though they are dealt with as part of the same 
investigation.  
Paragraph:   An administrative investigation involving various products that are not like products 
may be subject to the same administrative proce dure only if the domestic industry in both cases is 
composed of the same enterprises for both products.  If this is not the case, the investigation shall 
involve separate procedures, which may be ordered ex officio in the resolution on initiation of an 
investigation or requested by an interested party. 
 
Article 25.  Fair comparison between th e normal value and the export price.  In order to 
determine the margin of dumping, the Investigatin g Authority shall make a fair comparison taking 
into account the provisions of Decree Law No. 7 of 2006, paying special attention to Articles 10, 11 and 12, and to this Executive Decree, determining the difference between the normal value of the like 
product in the exporting country in the ordinary co urse of trade and the export price, taking into 
account the following parameters of comparison: 
 
(a) On the basis of sales made at the same level of trade, which shall in principle be the 
ex-factory level; 
(b) on the basis of sales made at as nearly as possible the same time, using the exchange 
rate in effect at the time. 
 In order to ensure a fair comparison and wher e feasible, the appropriate adjustments to the 
normal value and the export price shall be made on the basis of differences in models or types of G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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  product.  The Investigating Authority shall, inter alia , take into account the following factors when 
making the adjustments:  
(a) Due account shall be taken in each case, accord ing to the special circumstances, of 
the differences which affect price comparab ility, including differences in terms of 
sale, taxation, levels of trade, quantiti es, physical characteristics and any other 
differences which are also demonstrated to affect price comparability.  In order to 
make the comparison, a common basis shall be established to allow the differences 
between the products used to determine th e normal value and the export price to be 
offset. 
(b) In the cases covered in Article 23 above, costs, including taxes and duties incurred 
between import and resale, shall be take n into account, together with reasonable 
profits. 
(c) Where comparison requires the conversion of currencies, such conversion shall be 
made using the rate of exchange on the date  of sale, provided that when a sale of 
foreign currency on forward markets is directly linked to the export sale involved, the rate of exchange in the forward sale shall be used.  Fluctuations in exchange rates 
shall not be taken into account and in an  investigation the authorities shall allow 
exporters at least 60 days to adjust their export prices to reflect sustained movements 
in exchange rates during the period of investigation. 
 Without prejudice to the foregoing provisions, the existence of margins of dumping at the 
investigation stage shall normally be established on the basis of a comparison of a weighted average 
normal value and a weighted average of prices of  all comparable export transactions or by a 
comparison of normal value and export prices on a transaction-to-transaction basis.  A normal value 
calculated on the basis of the weighted average ma y be compared to the prices of individual export 
transactions where the authorities find a pattern of export prices which differs significantly among 
different buyers, regions or time pe riods, and if an explanation is provided as to why such differences 
cannot be duly taken into account by the use of a weighted average or transaction-to-transaction 
comparison.  
Article 26.  Determination of the margin of dumping .  Pursuant to Article 6.10 of the 
Anti-Dumping Agreement, as a general rule during the investigation procedure and for the purposes 
of the final determination, the individual marg in of dumping for each known exporter or producer of 
the product investigated shall be determined.  This  individual determination shall be made on the 
basis of the provisions contained in Article 24 of this Executive Decree. 
 
 In cases where the number of exporters, producers, importers or types of product involved is so large as to make such a determination impossibl e, the examination may be limited to a reasonable 
number of interested parties or pr oducts by using samples that are sta tistically valid on the basis of the 
information available at the time of the selection or to the largest percentage of the volume of exports 
from the country in question that can reasonably be investigated. 
 
 Any selection of exporters, producers, importers or types of product made in accordance with 
this Article shall preferably be chosen in consu ltation with, and with the consent of, the exporters, 
producers or importers concerned.  
 In cases where the authorities have limited thei r examination, as provided for in this Article, 
they shall nevertheless determine an individual ma rgin of dumping for any exporter or producer not  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 15 
  
  initially selected that submits the necessary information in time for it to be considered during the 
course of the investigation, unless the number of expor ters or producers is so large that individual 
examinations would be unduly burdensome and prev ent the timely completion of the investigation.  
The Investigating Authority shall receive voluntary responses. 
 Article 27.  Determination of anti-dumping measures in cases of global margins .  Where it is not 
possible to determine individual margins for al l exporters, pursuant to Article 9.4 of the 
Anti-Dumping Agreement, the Investigating Aut hority shall ensure that any anti-dumping duty 
applied to imports from exporters or producers not included in the examination shall not exceed: 
 
(a) The weighted average margin of dumping determined for the selected exporters or 
producers;  or 
(b) where the liability for anti-dumping duties is calculated on the basis of the 
prospective normal value, the difference be tween the weighted average normal value 
for the selected exporters or producers and the export prices of exporters or producers 
not individually examined. 
 The Investigating Authority shall disregard for the purposes of this Article any zero or 
de minimis margins and margins established in those cases where the exporter's refusal to cooperate 
means that the facts available had to be used.  The authorities shall apply individual duties or normal 
values to imports from exporters or producers not in cluded in the examination that have provided the 
necessary information during the course of the inv estigation, as provided in the preceding Article. 
 
CHAPTER II 
 
SUBSIDIES 
 Article 28.  Definition of a subsidy.  A subsidy shall be deemed to exist if: 
 
(a) There is a financial contribution by a gove rnment or any public body within the 
territory of a country, i.e. where: 
(i) A government practice involves a direct tr ansfer of funds (e.g. grants, loans 
and equity infusion), potential direct transfers of funds or liabilities (e.g. loan guarantees); 
(ii) government revenue that is otherwi se due is foregone or not collected 
(e.g. fiscal incentives such as tax credits );  in this case, the exemptions 
provided in footnote 1 to the Agre ement on Subsidies and Countervailing 
Measures shall be taken into account; 
(iii) a government provides goods or services ot her than general infrastructure, or 
purchases goods; 
(iv) a government makes payments to a financing mechanism or entrusts or 
directs a private body to carry out one or more of the types of function 
illustrated in sub-paragraphs (i) to (iii) above, which w ould normally be 
vested in the government, and the practice, in no real sense, differs from practices normally followed by governments. G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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  (b) Also, where there is any form of income or price support in the sense of Article XVI 
of the GATT 1994. 
(c) For a subsidy to exist, in the cases covered by  paragraphs (a) or (b) of this Article, a 
benefit must thereby be conferred. 
Article 29.  Specificity. 
 
(a) A subsidy shall be considered specific to an enterprise or industry or group of 
enterprises or industries, pursuant to the pr ovisions of Article 6 of Decree Law No. 7 
of 2006, when one of the following principles applies: 
(i) The State or the granting authority, or  the legislation pursuant to which the 
State or granting authority operates, explicitly limits access to a subsidy to 
certain enterprises, activities or industries; 
(ii) the State or the granting authority, or the legislation pursuant to which it 
operates, earmarks the subsidy fo r exported products or products 
incorporating domestic raw materials or inputs rather than those imported; 
(iii) despite the existence of objective crite ria or conditions laid down in a law, 
Executive Decree or other verifiable lega l rule governing the right to receive 
the subsidy and its amount, the right to receive it is not automatic or the granting authority does not comply with the said objective criteria or 
conditions; 
(iv) the subsidy is limited to certain en terprises located within a designated 
geographical region within the jurisdiction of the State or granting authority. 
(b) Even where a subsidy may be specific but ca nnot be described in the above terms, the 
Investigating Authority may determine the s ubsidy to be specific having regard to the 
following elements:  exclusive use of the s ubsidy by a limited number of enterprises 
or by an industry;  predominant use of the subsidy by certain enterprises or industries;  
the granting of disproportionately large am ounts of subsidies to certain enterprises;  
or the fact that the manner in which discr etion has been exercised by the granting 
authority indicates that the subsid y is not generally available. 
(c) Notwithstanding the provisions of the preced ing paragraphs, a subsidy shall not be 
considered specific where the criteria or  conditions governing eligibility for the 
subsidy and/or its amount are objective, neutra l and horizontal in application, so that 
they do not favour a certain enterprise or industry, the subsidy is not limited to a certain enterprise or industry, and elig ibility for the subsidy and its amount are 
automatic. 
 Any determination of specificity under the provisi ons of this Article and those in Article 2 of 
the Agreement on Subsidies and Countervailing Measur es shall be clearly substantiated on the basis 
of positive evidence.  Article 30.  Conditions for the application of countervailing duties.  Countervailing duties may 
only be imposed pursuant to an investigation initiated and conducted in accordance with the 
provisions of this Executive Decree, in particular  those set out in Article 2 thereof, and where  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 17 
  
  appropriate on the basis of the Agreement on Agri culture of the World Trade Organization.  The 
aforesaid investigation shall establish that the subsidy i nvestigated is specific, that it is causing injury 
within the meaning of this Executive Decree and th at there is a causal link between the subsidized 
imports and the injury.  The determination of the ex istence of a subsidy, injury, its causal link and the 
recommendation on imposing countervailing duties sha ll be the responsibility of the Investigating 
Authority in accordance with th e administrative procedure provided in this Executive Decree. 
 
Article 31.  Factors used to establish the amount of a subsidy according to the benefit obtained 
by the recipient.   The amount of a subsidy shall be calculated in monetary units or in ad valorem  
percentage per unit of subsidized produc t imported into the national territory. 
 
(a) For the purposes of determining the amount of the subsidy, the Investigating 
Authority may take the following into account: 
(i) Grants.  Grants may be made in different forms including, but not 
exclusively, equity infusion, conversio n of loans into capital or debt relief 
under an agreement.  Determination of  the amount of the countervailable 
subsidies in any given year shall take into account the time value of money and shall refer to the amount originally  paid, the number of years that have 
elapsed since the grant was made, the average useful life of the plant or 
equipment and the rate of interest payable in the country of origin. 
Provision of equity capital by the government shall not be considered as 
conferring a benefit unless the investment decision can be considered inconsistent with the usual investment  practice (including the provision of 
risk capital) of private investors in the said country. 
(ii) Loans.  Loans granted by the government  at rates equivalent to the market 
rate shall not be considered subsidi es, although the benefits resulting from 
loans granted in circumstances under which they would not normally be granted and lower interest rates paid or payable for loans granted at preferential rates shall be considered  subsidies.  When determining the 
amount of the countervailable subsidy in a given year, the Investigating 
Authority shall consider the time value of money and shall include a 
reference to the original amount of the loan, the number of years that have 
elapsed, the rate of interest paid on the loan and the market rate of interest 
applicable in the country of origin. 
(iii) Revenue foregone.  When determining the amount of the countervailable 
subsidy in a given year, the Investiga ting Authority shall take into account 
any revenue due to the government of the exporting country that was foregone and the products to which such revenue pertains. 
(iv) Tax holidays and rebates.  Non-payment of corporate tax on export earnings 
is a prohibited subsidy and actionable,  except for developing countries listed 
in Annex VII to the Agreement on Su bsidies and Countervailing Measures.  
In its determination of the margin of  subsidy, the Investigating Authority 
shall consider the enterprise's export ear nings for the period investigated and 
the corporate tax rate in that country.  In its determination of the margin of 
subsidy regarding a tax holiday, the Inv estigating Authority shall take into G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 18 
  
  account the amount of tax paid vis-à-vis the amount payable in the absence of 
such tax holiday, and the products to which it applies. 
(v) Input subsidies.  An input subsidy is a s ubsidy paid on the cost of an input for 
a product that is subsequently exported.  In its determination of the margin of 
subsidy, the Investigating Authority shall consider the effect of the input subsidy on the cost or price of the product under investigation. 
(vi) Over-reimbursement of customs duties.  Over-reimbursement of customs 
duties occurs when a manufacturer imports raw materials to be used to 
manufacture final products intended for export and the duty paid on the 
imports is over-reimbursed, or where the exporter cannot provide proof that 
the imported product for which reimburseme nt was claimed h as actually been 
incorporated into the exported product.  In its determination of the margin of 
subsidy, the Investigating Authority shall consider the amount of customs 
duty payable and that rebated or refunded. 
(vii) Preferential interest rates for export purposes.  If interest rates lower than 
those prevailing in the market are grante d to an enterprise by the government 
or a public body at the request of the government, they shall be regarded as a subsidy.  In its determination of the margin of subsidy, the Investigating 
Authority shall consider the interest  rate payable on domestic and export 
markets, the original amount of the loan and the value of the product 
exported. 
(viii) Other subsidies.  The Investigating Au thority shall determine the margin or 
amount for any subsidy not indicated under the preceding paragraphs with 
reference to the facts pertaining to each such subsidy, taking into account the 
following: 
1. The time value of money; 2. the duration of the subsidy; 3. whether the subsidy is linked to e xports or to all sales or production;  
and 
4. any other relevant informati on available to the Investigating 
Authority. 
 The Investigating Authority shall be entitled to  take into account and add up any or all of the 
subsidies found during the course of the investigati on, even if the industry has not alleged their 
existence. 
(b) In addition to the provisions contained in paragraph (a) of this Article, when 
determining the amount of the subsidy the following elements shall be deducted from 
the total subsidy: 
(i) Any expenditure that has necessarily been incurred in order to be eligible for 
the subsidy or to benefit therefrom;  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 19 
  
  (ii) export taxes, duties or other levies to which the export of the product to 
Panama has been subject and which are specifically intended to offset the subsidy. 
 When a participant in an investigation appli es for such a deduction, it shall supply  evidence 
substantiating its application. 
(c) The Investigation Authority shall also ta ke into account the following exemption 
criteria for subsidies: 
(i) A loan guaranteed by the government sha ll not be considered as conferring a 
benefit unless there is a difference betw een the amount that the enterprise 
receiving the guarantee pays on a loan guaranteed by the government and the amount that the enterprise would pay for a comparable commercial loan in 
the absence of the government's guarantee.   In this case, the benefit shall be 
the difference between these two amounts,  adjusted to take into account any 
difference in charges; 
(ii) the supply of goods and services or the purchase of goods by the government 
shall not be considered as conferri ng a benefit, unless the goods or services 
are supplied for less than the appropria te remuneration or the purchase is 
made for more than the appropriate re muneration.  The appropriateness of the 
remuneration shall be determined in re lation to prevailing market conditions 
for the product or service in question in the country of supply or purchase 
(including price, quality, commercial viability, transportation and other 
conditions of purchase or sale). 
TITLE IV 
 
SUBSTANTIVE RULES ON SAFEGUARDS 
 
CHAPTER I 
 
GENERAL PROVISIONS 
 
Article 32.  Definitions and terms.   For the purposes of this Ex ecutive Decree, the following 
definitions apply: 
(a) Injury.  This concept covers the serious injury caused to a domestic industry or the 
threat of serious injury to a domestic indus try and this term shall be interpreted in 
accordance with the provisions of this Ex ecutive Decree, Article 52 of Decree Law 
No. 7 of 2006, and Article 4 of the Agreement on Safeguards. 
(b) Facts available.  Facts substantiated by ev idence and data provided by the interested 
parties or additional parties in a proper and timely fashion, and the information gathered by the Investigating Authority during the course of the investigation and contained in the administrative file. 
(c) Public interest.  Pursuant to Article 3.1 of the Agreement on Safeguards and when it 
is considered appropriate, the Investiga ting Authority shall weigh up the various 
interests that may result from the application of a safeguard measure.  In such cases, it G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 20 
  
  may take into account other elements su ch as those included in the following 
illustrative list: 
(i) The effect that the imposition of a measu re has had or is likely to have on 
competition in the domestic market; 
(ii) The effect that the measure has had or is likely to have on domestic producers 
that use the goods as inputs in the production of other goods or for the supply of services; 
(iii) The effect that the imposition of a measu re has had or is likely to have on 
competition by limiting access to goods that are used as inputs in the 
production of other goods or for the supply of services, or by limiting access to technology; 
(iv) The effect that the imposition of a measure has had or is likely to have on the 
choice or availability of goods at co mpetitive prices for consumers;  and 
(v) The effect that the non-imposition of the measure or the non-imposition of 
such a measure in the full amount is lik ely to have on domestic producers of 
inputs, including primary commodities, used in the production of like goods. 
(d) Interested parties.  For the purposes of this Executive Decree, this covers the 
following: 
(i) Foreign producers and/or exporters a nd domestic importers of the product 
under investigation and trade, industrial or agricultural associations the 
majority of whose members are domestic importers, foreign producers or foreign exporters; 
(ii) The government of the country or customs territory of export of the product 
under investigation or the government of the country or customs territory of 
origin of the product under investigation; 
(iii) Domestic producers or trade, industrial or agricultural associations the 
majority of whose members are domestic producers of like or directly competitive products; 
(iv) Other interested parties determined by the Investigating Authority, for which 
purpose it shall take into account the exis tence of a legitimate interest or a 
subjective right that may be directly affected, impaired or satisfied as a result 
of the administrative investigation. 
(e) Investigation period.  For the purposes of Ch apter IV of Decree Law No. 7 of 2006, 
this means the period of time for collecting and furnishing data for the corresponding examination of each of the various aspects in the investigation.  Without prejudice to 
the Investigating Authority taking into acc ount special circumstances and determining 
a different investigation period, the fo llowing periods shall be determined for 
collecting data:  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
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  (i) Period for investigation into the in crease in imports.  The period for 
collecting data on the increase in imports  in safeguards investigations shall 
normally be three years and in no case less than 12 months and shall end as 
close as possible to the date of initiation of the investigation; 
(ii) Period for investigation of injury.  The period for collecting data in 
investigations for the purpose of establishing the existence of injury shall normally be at least three years, unless the party in respect of which data are being compiled has existed for a lesser period, and shall include the entirety 
of the period for data collection for th e investigation into increased imports. 
(f) Directly competitive product.  Pursuant to Article 52.7 of Decree Law No. 7 of 2006, 
this means a product which, although not a like product, competes directly with the product investigated. 
(g) Like product.  Pursuant to Article 52.8 of Decree Law No. 7 of 2006, this means a 
product that is identical, in other words, is alike in all respects to the one with which 
it is compared.  If the examination of similarity leads to a determination that there is no identical product, another product which, although not alike in all respects, has characteristics closely resembling those of the product investigated shall be 
considered a like product.  In examining similarity, the Investigating Authority may take into account: 
(i) The raw materials and other inputs used in producing the product; 
(ii) the production process; 
(iii) the physical characteristics and appearance of the product; 
(iv) the end-use of the product; 
(v) the substitutability of the product with  the product under investigation; 
(vi) the tariff classification;  and/or 
(vii) any other factor deemed relevant by the Investigating Authority. 
 No one or several of these factors can necessarily give decisive guidance. 
(h) Foreign producer.  Any natural person, entity  in fact or in law, whether public or 
private, engaged in any form of econom ic production activity, acting on their own 
behalf or on behalf of another, as a foreign manufacturer of the product under 
investigation. 
(i) Domestic producer.  For the purposes of clarifying the scope of Article 52.4 of 
Decree Law No. 7 of 2006, a domestic produ cer means any natural person, entity in 
fact or in law, whether public or private,  engaged in any form of economic production 
activity, acting on their own behalf or on be half of another, as a manufacturer of the 
goods under investigation and offered for sale by them or by a third party. G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 22 
  
  (j) Bilateral safeguards and special triggeri ng mechanisms.  This definition includes 
so-called transitional safeguards, bilatera l safeguards and any other measures without 
prejudice to the name given to the relevant  regulation, which may be applied by the 
Republic of Panama in accordance with the provisions of international trade 
agreements, conventions or treaties and which differ from the emergency measures 
authorized exclusively by Article XIX of the GATT 1994 and the Agreement on Safeguards. 
(k) Price undercutting.  The amount by which th e price of the imported product is less 
than the price of the like or directly competitive product produced by the industry, 
measured at an appropriate point of comparison. 
Article 33.  Product under investigation.   For the purposes of Article 2 of the Agreement on 
Safeguards, this means the product exported which it is claimed is causing serious injury to the 
domestic industry. 
 
Article 34.  Examination of similarity.  The product under investigation shall be subject to 
examination of similarity or competition, which shall consist of a comparison between the product 
under investigation and the like or directly compe titive domestic product.  This comparison shall be 
used to define the concept of interested parti es and to undertake the analysis of the increase in 
imports, injury and causal link according to the corresponding provisions. 
 
CHAPTER II 
 
INJURY 
 
Article 35.  Determination of serious injury.  In order to determine whether imports of a product 
have increased in such quantities or under such c onditions as to cause serious injury to a domestic 
industry in accordance with Articles 53 and 54 of  Decree Law No. 7 of 2006, the Investigating 
Authority shall evaluate all relevant factors of an  objective or quantifiable nature having a bearing on 
the situation of that industry in order to determ ine whether, on the basis of the following elements, it 
may be concluded that there is significant general im pairment of the situation in the domestic industry 
on the basis of the criteria below: 
 
(a) Trend in imports:  The rate and amount of the increase in imports shall be examined 
both in absolute terms and relative to the domestic industry, together with apparent 
domestic consumption, in order to establis h whether the changes have been sudden 
and unexpected.  The price of the imports, the import conditions and the share of the 
domestic market taken by increased impor ts shall also be taken into account. 
(b) Situation of the domestic industry:  The trend in the following indicators shall be 
examined, together with the performance th at could reasonably have been expected 
from each in the light of the trend in the economy: 
(i) Trend in output in absolute terms and relative to sales and domestic 
consumption; 
(ii) trend in sales on the domestic market and net sales income, as well as the 
relationship between the two; 
(iii) trend in the utilization of plant capacity;  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
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  (iv) productivity trend; 
(v) profit and loss accounts; 
(vi) employment; 
(vii) price trends and impact of the imports:  the trend in selling prices for the 
product on the domestic market shall be examined, together with the performance that could reasonably have been expected in the light of the 
trend in price indices in the economy, in order to determine whether the imports have depressed prices or have prevented price increases that would 
otherwise have occurred; 
(viii) the trend in the volume of inventories, in  absolute terms and relative to sales 
and domestic production, in order to establish whether there has been a deterioration in sales and production that  reflects a quantifiable impact on the 
level of inventories; 
(ix) the financial statements of the pr oducing enterprise and for the production 
line for the product under investigation.  Where it is not possible to obtain information on the production line, the impact shall be measured in relation to the production of a more restricted group or range of pr oducts that includes 
the like or directly competitive domestic product.  The impact of the financial statements shall be measured taking into account the trend in the economic 
sector to which the domestic industry belongs; 
(x) direct or indirect labour used on the production line or for the more restricted 
group or range, measured in terms of the number of workers and the amount of wages. 
 The absence of negative trends or the presence of  positive trends in one or more of the factors 
referred to in this provision does not constitute a decisive criterion. 
 Article 36.  Determination of threat of serious injury.   In order to determine a threat of serious 
injury caused by imports and pursuant to Article  4.1(b) of the Agreement on Safeguards, the 
following shall be considered in addition to the i mminent effects on the factors referred to in the 
preceding Article: 
 
(a) The possibility of an increase in imports due, inter alia , to the existence of a supply 
or sales contract, the award of a tender, an irrevocable offer or other similar contract; 
(b) an increase in the export capacity of the country of origin as a result of increased 
utilization of plant capacity for the product i nvestigated or an increase in inventories; 
(c) the likelihood that the exports resulting fro m the increased potential capacity in the 
exporting country will be exported to the Panamanian market.  For the purposes of this examination, the fall in prices, st atistically valid estimations or other 
circumstances that may promote such exports may be taken into account; 
(d) the existence of letters of credit for the payment abroad of imports of the product 
investigated. G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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 The absence of negative trends or the presence of  positive trends in one or more of the factors 
referred to in this provision does not constitute a decisive criterion. 
 
CHAPTER III 
 
CAUSAL LINK 
 
Article 37.  Determination of the existence of a causal link.   Proof of the existence of a causal link 
between imports of the product under investigati on and the injury caused to the domestic industry 
shall be provided based on an examination of all relevant evidence availabl e to the Investigating 
Authority, as required by Article 55 of Decree Law No. 7 of 2006.  
Article 38.  Non-attribution.  Pursuant to Article 4.2(b) of the Agreement on Safeguards, the 
Investigating Authority shall also examine any know n factors other than imports of the product under 
investigation that are having an impact on the domestic industry, and are contributing to or 
participating in the injury caused to it and the injury caused by these other factors shall not be 
attributed to the imports under investigation.  Fact ors that may be relevant in this respect include, 
inter alia , contraction in demand, changes in the patt ern of consumption and the export performance 
of the domestic industry. 
  Where, after having assessed the impact of th ese other non-attributable factors and eliminated 
their impact on injury, the Investigating Author ity finds that imports of the product under 
investigation continue to be a cause of injury, it may conclude that there is a causal link. 
 
CHAPTER IV 
 
GENERAL SAFEGUARDS 
 Article 39.  Conditions of application.   Pursuant to Article 2 of the Agreement on Safeguards, a 
safeguard measure may only be imposed in response to a rapid and significant increase in imports of a 
product as a consequence of an unforeseen change  in circumstances if such an increase causes or 
threatens to cause serious injury to the domestic industry that produces like or directly competitive 
products.  
Article 40.  Types of safeguards.   When imposing safeguard measures, the provisions of Article 5 of 
the Agreement on Safeguards shall be respected in th e sense that the safeguard may be applied in the 
form of a customs duty or quantitative import restrict ion to the extent necessar y to prevent or remedy 
serious injury and to facilitate adjustment.  The choice  of the type of measure to be imposed is at the 
discretion of the Investigating Authority, which ma y take into consideration any requests made by 
interested parties in this respect. 
 
(a) Tariff modifications.  The aim of application of a safeguard measure in the form of a 
tariff modification shall be to increase the tariff to a level that prevents or remedies the injury.  For this purpose, the Investiga ting Authority may, as guidance, take into 
consideration the difference in prices betw een the weighted average import price of 
the product under investigation and the highest price of the like or directly 
competitive domestic product for local consum ption.  The Investigating Authority 
may also use any other method it deems re asonable and adequately justified when 
determining the type of measure to be applied.  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 25 
  
   
(b) Quantitative restrictions.  If a quantitative restriction is used, such a measure shall not 
reduce the quantity of imports below the leve l of a recent period, which shall be the 
average of imports in the last three re presentative years for which statistics are 
available, unless clear justification is given that a different level is necessary to prevent or remedy injury, taking into acc ount the most recent date possible when 
establishing the measure. 
(i) In cases where quantitative restrictions are used and the quota is allocated 
among supplying countries, agreement may be sought with respect to the 
allocation of shares in the quota with exporting countries having a substantial 
interest in supplying the product concerned; 
(ii) in cases in which this method is not reasonably practicable, exporting 
countries having a substantial interest in supplying the product shall be 
allotted shares based upon the proportions of the total quantity or value of 
imports of the product supplied by the said countries during a previous representative period, due account being taken of any special factors that may have affected or be affecting trade in the product; 
(iii) the Investigating Authority may depart from the provisions in 
sub-paragraph (b)(ii) of this Article provided that consultations are conducted 
with the exporting countries under the auspices of the Committee on 
Safeguards of the World Trade Organiza tion and that clear demonstration is 
provided that: 
1. The existence of serious injury and not only threat of serious injury 
has been determined; 
2. it is established that the imports from certain countries have increased 
in disproportionate percentage in  relation to the total increase in 
imports of the product under inv estigation over the period for 
collecting data on the increase in imports; 
3. there are justified reasons for the departure from 
sub-paragraph (b)(ii) of this Ar ticle and the conditions of such 
departure are equitable for all supplie rs of the product concerned;  or 
the suppliers have not cooper ated in the investigation. 
Article 41.  Adjustment plan for the domestic industry.   Where the Investigating Authority deems 
it necessary and pursuant to Article 66 of Decree Law No. 7 of 2006, irrespective of whether the 
investigation was initiated ex officio or at the requ est of a party, the applicant may be required to 
submit a plan for reorganization of the industry or a plan to overcome the circumstances alleged to be 
the cause of injury.  Submission of this adjustment  plan by the domestic industry may be required by 
the Investigating Authority during the investigati on or after it has concluded when recommending the 
application of measures to the Cabinet Council, without prejudice to presentation of the adjustment plan together with the application for initiation of an investigation.  
 Any adjustment plan must, as a minimum, include  an identification of the circumstances to be 
overcome, the current circumstances so that the ch anges can be quantified, future developments, a 
planned scenario showing the circumstances ove rcome and a programme with the corresponding G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 26 
  
  timetable for carrying out the action to be taken to  achieve the necessary conversion.  The plan shall 
also show that it is financially viable and that  the domestic industry has the necessary economic or 
credit resources to implement it.  Lastly, the plan shall identify the performan ce indicators which, in 
the opinion of the industry, are appropriate for m easuring the implementation of the adjustment plan. 
  The Investigating Authority shall examine the ad justment plan and shall consider whether the 
proposal is realistic and sufficient.  If it considers that this is not the case, it may give the domestic 
industry an opportunity to modify the plan, for wh ich a period not exceeding 15 calendar days shall be 
given.  The proper implementation of these plans shall be revised and/or verified regularly by the 
Investigating Authority within the peri od of imposition of the safeguard measure. 
  Failure of the domestic industry concerned to comply with the implementation of the 
aforesaid plan may result in the immediate liberalization or suspension of the application of a 
safeguard measure, subject to the Investigating Authority's examination and recommendation, except 
in those cases in which failure to comply with the pl an cannot be attributed to the domestic industry.  
Where partial non-compliance with the plan is attribut able to the domestic industry, the impact of the 
liberalization or suspension of the measure on the domestic industry shall be evaluated as if it had 
complied.  
Article 42.  Negotiation of concessions and compensation.   When applying or extending a 
safeguard measure, in accordance with Article 8. 1 of the Agreement on Safeguards of the World 
Trade Organization, it shall be ensured that a subs tantially equivalent level of concessions and other 
obligations to those existing under the GATT 1994 vi s-à-vis the exporting Members which would be 
affected by such a measure is maintained.  To ach ieve this objective, there may be agreement on any 
adequate means of trade compensation for the measure's adverse effects on trade. 
 Article 43.  Exemption from application of measures.   Pursuant to Article 60 of Decree Law No. 7 
of 2006, safeguard measures shall not be applied against a product originating in a developing 
country, Member of the World Trade Organization, as long as imports of the product concerned do not exceed three per cent (3%) of total imports and provided that developing country Members of the 
Organization with less than a three per cent (3%) import share collectively account for not more than 
nine per cent (9%) of total imports of the product concerned.   The exemption may be reviewed if, subsequent  to the imposition of measures, a country that 
had been exempt pursuant to the preceding paragra ph becomes a large supplier precisely in order to 
be exempt from application of the measure. 
TITLE V 
 
COMMON PROCEDURAL REGULATIONS 
 
CHAPTER I 
 
ADMINISTRATIVE FILE 
 Article 44.  Content of the file.   Any administrative action shall be recorded in writing and added to 
the respective file, except for action of an oral nature  authorized by the law.  The same shall apply to 
written submissions by the parties and to their interventions in the proceedings. 
  An administrative file shall be kept for inves tigation proceedings referred to in this Executive 
Decree and shall include all the documentation s ubmitted by the parties, as well as that collected  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 27 
  
  ex officio by the Investigating Authority, which sha ll be filed chronologically according to the date of 
receipt.  All the documentation shall be placed in the administrative file immediately and numbered consecutively using ink or any other secure medium.  Th e file shall be divided into two parts, one of 
which shall contain information available to the pub lic and the other confidential information, both of 
which shall be under the safe-keeping and respons ibility of the Investigating Authority from the 
outset.  Article 45.  Access to the file.   In addition to the officials resp onsible for proceedings, access to the 
file shall only be given to interested parties, thei r attorneys and clerks, duly accredited to the office in 
writing, without prejudice to the right of interested  third parties to obtain authenticated or certified 
copies from the respective authority, provided that the information is not confidential. 
  The files may only be taken out of the offi ce when they are required for the submission of 
evidence, at the request of a supervisor who has to take cognizance of and decide on any procedure 
related to the facts concerned by the files' cont ents and upon authorization by the Office of the 
Attorney General or the Judiciary, or if the offi ce does not have the appropriate means of complying 
with requests for copies.  Article 46.  Requests for copies.   Parties may request copies of the file and for this purpose they shall 
be duly accredited with the Investigating Authorit y and indicate the sheets for which they are 
requesting copies.  This procedure may be conducted orally directly with the Investigating Authority 
and the costs shall be borne by the requesting party.  
CHAPTER II 
 
LEGAL STANDING 
 Article 47.  Legal standing.   Any person meeting the requirement of interested party as defined in 
Article 8(g) of this Executive Decree may be party to the administrative proceedings. 
 
Article 48.  Interested third parties.  In addition to status as an interested party, the Investigating 
Authority may classify as an interested party any third party indirectly concerned by the final 
determination or rejection or revision, even if thei r interest is secondary or not direct in comparison 
with that of an interested party itself.  Such a pe rson shall act as an additional party.  Such a third 
party shall participate in the proceedings but may not make any request on its own behalf or modify 
the claim to which it is an additional party, although it may make all claims of fact and of law in order 
to put forward its interest;  it may not make app eals but may express an opinion in favour or against 
and provide arguments additional to those put forward by the interested parties.   This category may include industrial users of the product under investigation and/or the like 
domestic product and representative consumers' associ ations in cases where the product is normally 
sold at the retail level.  In addition to the provi sions in the preceding paragraph, these third parties 
shall be given an opportunity to furnish any inform ation relevant to the investigation in connection 
with the facts being investigated.  Article 49.  Professional representation.   Pursuant to Article 50 of Law No. 38 of 2000, any action 
by parties in administrative proceedings on trade saf eguards shall be through a competent attorney, in 
particular, the submission of an application for i nvestigation, in accordance with Articles 28 and 62 of 
Decree Law No. 7 of 2006.  Direct action by the par ties such as requests for copies, review of a file, 
certificates and other such acts or similar acts are excluded from this requirement.  G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 28 
  
  CHAPTER III 
 
EVIDENCE 
 
Article 50.  Information requirements.   Pursuant to Articles 35 a nd 71 of Decree Law No. 7 of 
2006, the Investigating Authority may require the ev idence, information and data it deems relevant 
from all parties to the proceedings and may use form s for this purpose.  The Investigating Authority 
shall inform the parties concerned by an investig ation of the information required and shall give 
ample opportunity to submit in writing all the ev idence it deems relevant.  Notwithstanding the 
investigative powers of the Investigating Authority, both the applicant and the other interested parties 
shall bear prime responsibility for substantiati ng the claims in defence of their interests. 
  The Investigating Authority may also require domestic producers, distributors or traders of 
the product or good in question, as well as customs o fficials, attorneys or consignees of importers, or 
any other person, legal entity or government body it deems appropriate, to supply information and 
data available to them.  Article 51.  Types of evidence.   Evidence shall consist of documents , affidavits, official inspections, 
exhibits, expert opinions, reports, circumstantia l evidence, scientific methods, photocopies or 
mechanical reproductions and documents sent in the fo rm of facsimiles, as well as any other rational 
element used to form the official's opinion, provide d that they are not specifically prohibited by law 
and are not contrary to morality or public order.  In the case of facsimile evidence and copies, the 
public entity concerned shall guarant ee their authenticity, comparing th em with the original within a 
reasonable period of time after receipt, by means of  authentication by a notary or any other method it 
deems appropriate. 
  The Investigating Authority shall assess the admissibility of the evidence proposed and 
submitted by the parties, whether or not in the orde r of their submission, concerning the facts to be 
substantiated and shall also take into consideration the legal regulations governing evidence.  The 
provisions listed below shall be taken in to account with regard to evidence. 
 
(a) Documents.  Written or printed matter, plans, drawings, pictures, photographs, 
photocopies, X-rays, cinematographic films, discs, sound recordings and, in general, 
any object of a representative or declarativ e nature.  The following rules shall apply 
in the case of documents: 
(i) All documents drawn up or supplemente d by government officials according 
to the required form and within the limits of their functions shall be considered public documents.  Photocopi es of original documents shall have 
the status laid down in this Article if  the official authorizing them certifies 
therein the reason for which they are faith ful reproductions of the originals.  
Documents drawn up by public notaries are public deeds, as are any other 
documents expressly designat ed as such by the law; 
(ii) provided that they are not claimed to be counterfeit copies, public documents 
or deeds provide convincing evidence of the material existence of the facts 
which the public official affirms therein that he has himself carried out or that 
were carried out in his presence, in exercise of his functions; 
(iii) public documents issued abroad shall be  deemed comparable to Panamanian 
public documents provided that they meet the following requirements:   G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 29 
  
  (1) they have been issued in acco rdance with the forms and formalities 
required in the country where the acts and contracts have been verified;  and (2) the signature of the issuing o fficial has been duly authenticated; 
(iv) private documents issued in Panama or  abroad and recognized by the parties 
or declared as recognized in accordance  with the law shall be valid between 
the parties and in relation to third pa rties in respect of the statements 
contained therein, unless otherwise proven.  The same shall apply to information published on the Internet, for which the party presenting it must 
submit a hard copy to be included in the file indicating precisely the 
electronic address of origin, as well as the date and time at which the hard copy was printed in order to determine that the information existed as printed 
at that time; 
(v) private documents issued abroad may be subject to a consularization 
procedure or certified signature by the party providing the document.  Such a 
procedure shall not be proof of the valid ity of their content, which shall be 
subject to the normal requirements governing private documents; 
(vi) any document drawn up in any language other than Spanish shall be 
accompanied by a translation and copies of both.  The translation shall be undertaken by an official translator and the cost borne by the party providing 
the document. 
(b) Testimony.  Testimony shall be valid for proving or clarifying facts relevant to the 
investigation of which the person providing the testimony has direct knowledge.  The 
witness shall be a person of integrity and have  no interest in the matter.  Persons with 
any type of direct or indirect interest in the outcome of the investigation may testify, 
but their declarations shall be evaluated in this light.  This is why prior to making a 
statement witnesses shall swear or affirm that they are declaring the truth on pain of bearing false witness;  accordingly, the pe rson responsible for the proceedings shall 
read out and explain to the witness in an easily understandable way the consequences 
that failure to tell the truth coul d involve in the case of perjury. 
(c) Expert or technical opinions.  Expert or technical evidence shall be given when it is 
necessary to evaluate facts or circumstan ces that require special knowledge outside 
the field of law.  A party interested in pr oviding expert evidence shall, when offering 
it, explain clearly and precisely the points on which the decision should focus and at the same time formulate the questions  to which the expert should reply. 
After agreement to the submission of expe rt evidence has been given, the other 
interested party shall be immediately notif ied.  Any interested party opposing it may, 
within a specified period reasonably dete rmined by the Investigating Authority, 
request that the evidence regarding the points of the decision be supplemented, 
describing them in detail, or may contest all or some of the points.  The expert's fees shall be covered proportionately by each pa rty according to the information requested 
from the expert by each one of them. 
Article 52.  Obligation to collaborate and obstruction of the investigation.   The parties and their 
attorneys shall be obliged to collaborate in obtai ning the evidence specified.  The Investigating 
Authority shall communicate to interested parties suff iciently in advance the place, date and time for G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 30 
  
  submission of evidence, where appropriate, advising th at the interested party may appoint an attorney 
or experts to assist it.  
 In cases in which an interested party refu ses access to the necessary information, does not 
allow its verification, does not provide it within a reasonable time or significantly impedes the investigation, the Investigating Authority may form ulate preliminary or definitive positive or negative 
determinations on the basis of the known facts and the best information available.  In implementing 
this paragraph, the provisions set out in Annex II,  which forms part of this Executive Decree, shall 
apply. 
 Article 53.  Confidential information.   For the purposes of this Executive Decree and Articles 6.5 of 
the Anti-Dumping Agreement, 12.4 of the Agreem ent on Subsidies and Countervailing Measures and 
3.2 of the Agreement on Safeguards, any informati on which is by nature confidential or which is 
provided on a confidential basis by parties to an  investigation shall, upon good cause shown, be 
treated as such by the authorities.  Information provided under such conditions shall be clearly 
identified as confidential, otherwise it shall not be co nsidered as such.  Such information shall not be 
disclosed without the specific consent of the party submitting it.   Information may be considered confidential or subject to restricted access if for reasons of 
public or individual interest it may not be dissem inated because its disclosure would imply a 
significant advantage for a competitor or would have a significantly unfavourable effect for the person 
providing the information or for a third party from which it was received, likewise information whose 
disclosure could cause serious prejudice to society, the State or the person concerned, as is the case 
for example for negotiations on international tr eaties and conventions, national security, political 
ideas, civil status, criminal and police records, bank accounts and other similar information which is 
confidential in accordance with legal provisions.   It shall be the responsibility of the Investigati ng Authority to decide whether the justification 
for confidentiality is sufficient.  Where this is not the case, it shall info rm the party that this 
information will not be taken into account unless it can be convincingly shown using appropriate 
sources that the information is correct, for which pur pose a strict time-limit will be granted that may 
be five to ten days.  If the explanations are not sa tisfactory, the information shall be returned to the 
party providing it unless it agrees that the informat ion should be made public and consents to its 
disclosure.  
 In accordance with the last paragraph of Article 86 of Decree Law No. 7 of 2006, where 
copies of documents or certificates containing confid ential information are to be obtained, these shall 
only be provided at the request of the Office of the Attorney General or the judicial authority in the form prescribed by the relevant provisions, in wh ich case the said authority shall ensure that the 
information is treated confidentially.  
Article 54.  Non-confidential summaries.   In accordance with Article 86 of Decree Law No. 7 of 
2006, the Investigating Authority shall require any pe rson providing confidential information to attach 
non-confidential summaries thereof.  The non-confid ential summary shall be equivalent to the 
confidential document with an indication in each case of the information that has been omitted and the 
reasons therefor.  Such summaries shall be sufficientl y detailed to allow the other interested parties to 
have a clear understanding of the information pr ovided, for which purpose the explanatory means 
used may include the following:  data charts in pe rcentage terms, a generic explanation of the data 
furnished, etc.  In exceptional circumstances, the parties may indicate that the information is not 
susceptible of summary.  In such exceptional circumstances, they sha ll state the reasons for which the 
information cannot be summarized.  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 31 
  
   
 If the Investigating Authority finds that the su mmaries are not sufficiently detailed or that the 
reasons given for finding it impossible to summarize the information are not warranted, it may 
disregard such information and return it to the part y providing it so that within a strict time-limit of 
five to ten days it can make good the omission, renoun ce its presentation or authorize its inclusion in 
the file as non-confidential information or convi ncingly show using appropr iate sources that the 
information is correct.  
Article 55.  In situ  verification.   During the investigation the Investigating Authority shall satisfy 
itself of the accuracy of the information submitted by the interested parties, for which purpose when it 
considers it appropriate it may undertake in situ  verification of the informa tion provided by the parties 
on which to base its conclusions, directly in either domestic or foreign enterprises.  The enterprises 
shall be informed of the visit in advance and of th e general nature of the in formation to be verified, 
without this preventing a request for further details  during the visit in the light of the information 
obtained.   Where it is necessary to conduct investigations  in the territory of other Members, the 
agreement of the enterprises concerned shall be obtained and the representatives of the government in 
question informed, provided that the said government does not oppose the investigation. 
 
 In investigations conducted in the territory of other countries, the procedure set out in Annex I 
to Article 209 of this Executive Decree shall be fo llowed.  Without prejudice to the provision on the 
protection of confidential information, the Inves tigating Authority shall make the findings of these 
investigations available to the enterprises concer ned or shall provide information thereon and may 
make the findings available to the applicants. 
 Article 56.  Evidence whose cost is to be borne by the interested parties.  The Investigating 
Authority may request from interested parties ex officio and at their cost questionnaires, expert 
opinions, technical decisions or criteria and undertake any type of administrative procedure leading to verification of the facts claimed.  The parties ma y also offer to assume the cost of obtaining any 
evidence they propose when the cost of obtaining  such evidence cannot be borne by the State. 
Article 57.  Evaluation of evidence.   Evidence shall be evaluated according to rules of sound 
criticism without excluding the documentary probity established by law for the existence or validity 
of certain acts or contracts.  
CHAPTER IV 
 
ADMINISTRATIVE RESOLUTIONS AND DECISIONS 
 Article 58.  Administrative decisions.   Decisions by the authorities in proceedings governed by this 
Executive Decree shall be classified in accordance with Article 201 of Law No. 38 of 2000 and shall 
be clear, precise and consistent.  Depending on their content, they shall be entitled as follows: 
 
(a) Resolution.  A legally-based and duly substa ntiated administrative act deciding on the 
merits of the petition, bringing proceedings to  an end or deciding on an incident or 
appeal at government level.  All resolutions shall include a number, date of issue, the 
name of the authority issuing it and a preambular part explaining the criteria 
justifying it.  The substantive part shall contain the decision, appeals that may be 
made against it at the government level, the legal basis and the signature of the 
official responsible. G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 32 
  
  (b) Resolution for immediate compliance.  An administrative act that must be complied 
with immediately and may not be contested, for example, resolutions concerning a request for copies, the transmission of a file  to a supervisor, closure of volumes, etc. 
(c) Procedural resolution.  This decides on the admissibility or rejection of evidence, on 
the confidentiality of information and any other interlocutory matters regarding the 
normal course of the proceedings but no t involving the substance of the case. 
(d) Substantive resolution.  This category shall include those resolutions deciding on the 
initiation of an investigation or the imposition of provisional measures and 
resolutions ending the proceedings, whethe r or not by imposing definitive measures, 
and in general decisions on the merits of the claim. 
 The relevant competent authority shall comply w ith the principle of tran sparency and with its 
obligation to give public notice under the terms of this Executive Decree and Law No. 23 of 1997. 
 
Article 59.  Content and form of substantive resolutions.  Substantive resolutions shall resolve 
each and every aspect that was the subject of the in vestigation.  In addition to complying with the 
general requirements prescribed in Law No. 38 of  2000, the competent authority shall take into 
account the following considerations regarding content and form:  
(a) The paragraphs shall be numbered consecu tively from first to last throughout the 
body of the resolution. 
(b) The following aspects shall be included in th e examination of the substance, together 
with any other aspects deemed necessary by  the competent authority, in particular 
those indicated in Law No. 23 of 1997: 
(i) An evaluation of the lack of cooperation or hindrance by parties in furnishing 
evidence and the decision to utilize kn own facts and the best information 
available; 
(ii) an analysis of the substantive issues rai sed by the parties, the exceptions put 
forward and the reasons deemed applicable .  In particular, there shall be an 
analysis of the conditions or requirements for the decision on whether or not to impose measures to safeguard trade, indicating separately matters relating 
to unfair practices or increased imports, injury, and the causal link; 
(iii) there shall be an analysis of whether or not the provisional measures, if 
imposed, should be confirmed, as we ll as any other issue related to 
retroactivity of definitive measures. 
(c) In its decision, the competent authority sh all mention the following aspects, as well as 
any other aspect deemed necessary: 
(i) Acceptance or rejection of price undert akings and exemption of exporters 
from the proceedings; 
(ii) determination of whether or not there has been unfair practice or an increase 
in imports, injury, and the causal link;  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 33 
  
  (iii) a recommendation to the Cabinet Council on the imposition of definitive 
measures, their duration and scope, or rejection of the complaint; 
(iv) a recommendation to the Cabinet Council confirming or annulling 
provisional measures and retroactive app lication of the definitive measures. 
CHAPTER V 
 
COMMUNICATION AND NOTIFICATION 
 
Article 60.  Notifications.   Resolutions shall be notified in  accordance with this Executive Decree 
and other regulations governing administrative proc eedings.  Resolutions for immediate compliance 
or procedural resolutions shall be notified within  two days following the date on which they were 
issued.  In the case of substantive resolutions, the formalities for their notification shall be initiated at 
the latest within five days following the date of th eir issue, without prejudice to a decision by the 
Investigating Authority that, for the purposes of tr ansparency, an excerpt thereof should be published 
in the Gaceta Oficial . 
  Notifications to be made in the national territory may be transmitted:  personally, by 
registered mail, by public display, by publication in the Gaceta Oficial  or a national newspaper with 
broad circulation, or by any other direct means such  as specialized messenger service, or by electronic 
means.  Notifications transmitted by any of the fo regoing means shall take effect on the working day 
following that on which they were made, unless otherwise provided.   The first notification to be made to interest ed parties abroad that have not indicated any 
address for notifications in the national territory  may be made through the postal services or by 
transmission to the competent diplomatic repres entative of the exporting Member accredited to 
Panama or otherwise to an official representative of the exporting country accredited preferably to the 
World Trade Organization or other similar organi zation.  For the purposes of this Article, a 
notification shall be considered to have been recei ved one week after the date on which it was sent to 
the addressee.  Parties that have been notified in accordance with the provision s in this Article shall 
indicate an address or similar mechanism in order to receive notifications.  Any interested party that 
does not provide such an indication shall be deemed to have been notified of the following procedural 
acts after expiry of the twenty-four (24) hours following notification of the last of the parties that has duly indicated an address therefor.   The Investigating Authority may directly inform the government of the country of origin or 
export of the product investigated of those procedur al acts required by this Executive Decree.  Such 
notifications may be transmitted using any of the m eans provided in this Article to the diplomatic 
representation in the Republic of Panama or, in its  absence, to the representation at the World Trade 
Organization.   In conformity with the World Trade Organizati on's principle of transparency, public notice of 
any substantive resolutions taken during the pro ceedings shall be put on the website of the 
Investigating Authority and an excerpt shall be published in the Gaceta Oficial  or in any national 
newspaper with broad circulation.  These public not ices shall not include any information deemed to 
be confidential.  
Article 61.  Notice and communication to the World Trade Organization.   The Minister for Trade 
and Industry shall promptly transmit communica tions and/or notifications through Panama's 
Permanent Mission in Geneva, Switzerland, to  the Committee on Anti-Dumping Practices, the G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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  Committee on Subsidies, or the Committee on Safe guards, as appropriate.  These communications 
shall be those which the Republic of Panama must make in its capacity as a Member of the World Trade Organization and in general terms incl ude at least the following:  (a) notice of the 
initiation of an investigation;  (b) the imposition of provisional or definitive measures;  (c) the 
acceptance of price undertakings;  and (d) the susp ension, elimination or extension of measures. 
 
CHAPTER VI 
 
REMEDIES 
 Article 62.  Acts open to appeal.   Substantive resolutions may be contested by the persons they 
affect.  In such cases and pursuant to Article 93 of Decree Law No. 7 of 2006, it shall only be possible 
to lodge an appeal, which shall be  granted with devolutive effect. 
 
Article 63.  Appeals.   Appeals shall be lodged or submitted to the first-level authority in the act of 
notification, or made in writing within five working days of the date of notification of the resolution 
or act contested, pursuant to Title XI, Chapters I a nd III, of Law No. 38 of 2000.  For the purposes of 
appeal proceedings, the provisions in Articles 171 et  seq. of Law No. 38 of 2000 shall be followed. 
 
Article 64.  Resolution of appeals.   Where it has not been announced that any evidence is to be 
submitted at this level, the decision shall be a dopted within a period not exceeding fifteen working 
days of the appeal if it has been directly transm itted to the higher-level office or from the date on 
which the latter received the file if the app eal was made to a first-level authority. 
 
Article 65.  Exhaustion of administrative remedies.  In the absence of a response from the 
competent official within the requisite period, the a ppeal shall be deemed to have been rejected and 
the administrative remedies exhausted.  The sa me shall apply to rejection of the appeal. 
CHAPTER VII 
 
EARLY TERMINATION 
 
Article 66.  Termination of the investigation.   In investigations into un fair trade practices, when the 
Investigating Authority determines that the marg in of dumping or the amount of the subsidy is 
de minimis , it shall immediately terminate the investiga tion, as provided in Article 16 of Decree Law 
No. 7 of 2006.  Where the Investigating Authority determines that the volume of actual or potential 
imports dumped or subsidized is ne gligible, the same shall apply. 
 Article 67.  De minimis margin.   In investigations into unfair trade practices, a margin shall be 
considered de minimis in the following cases: 
 
(a) In dumping investigations, when the margin is less than two per cent (2%), expressed 
as a percentage of the export price. 
(b) In subsidies investigations, the amount of the subsidy shall be considered de minimis  
when the amount of the subsidy is less than one per cent (1%) ad valorem .  When the 
exporting country is a developing country, it sha ll be considered that the total level of 
subsidies granted for the product in question is de minimis  if it does not exceed 
two per cent (2%) of its value, calculated on a per unit basis.  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
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  (c) The foregoing calculations may be made as a total per country and individually by 
exporter and if the total margins are less th an the levels determined, the investigation 
shall be terminated in accordance with the preceding Article.  Where it is determined 
that there are individual de minimis margins for certain exporters, the investigation 
into those exporters shall be terminated but  shall continue for those exporters with 
higher margins. 
Article 68.  Negligible imports.   Imports shall be considered negligible in the following cases: 
 
(a) In dumping investigations, when the volume of the dumped imports from a particular 
country accounts for less than three per cent (3%) of imports of the like product into the domestic market, unless countries which individually account for less than three per cent (3%) of the imports of the said product into the domestic market 
collectively account for more than sev en per cent (7%) of such imports. 
(b) In subsidies investigations, when the s ubsidized products come from developing 
countries and the volume of such imports accounts for less than four per cent (4%) of total imports of the like product into the domestic market, unless the imports from developing country Members which individu ally account for less than four per cent 
(4%) of total imports collectively account fo r more than nine per cent (9%) of total 
imports of the like product into the domestic market. 
(c) In general safeguards investig ations, safeguard measures sh all not be applied against 
a product originating in a developing country  Member where its share of imports by 
the Member importing the product in qu estion does not exceed three cent (3%), 
unless developing country Members whic h individually account for less than 
three per cent (3%) collectively account for more than nine per cent (9%) of total 
imports of the product in question. 
(d) When the exports under investigation come from more than one country, the 
investigation may continue for those countries whose exports are not negligible. 
Article 69.  Withdrawal.   The complainant may at any time w ithdraw from the investigation, by 
means of a duly substantiated written request, and th e Investigating Authority shall then terminate the 
investigation.  If the complaint has been submitted by several enterprises, withdrawal by some of 
them shall not entail termination of the investiga tion if the remainder represent a large proportion of 
the domestic industry.  
TITLE VI 
 
ORDINARY PROCEEDINGS AGAINST UNFAIR TRADE PRACTICES 
 
CHAPTER I 
 
PHASE PRIOR TO INITIATION OF THE INVESTIGATION 
 
Article 70.  Application.   Investigations intended to de termine the existence, degree and 
requirements necessary for the imposition of any of the measures regulated by this Executive Decree 
shall be initiated subject to a written application made by the domestic industry or on its behalf, 
except in those cases in which special circumstances justify th e ex officio initiation of an 
investigation. G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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Article 71.  Entitlement.   All domestic producers of like products according to the definition 
contained in Article 9 of this Executive Decree and the provisions in Articles 26 and 27 of Decree 
Law No. 7 of 2006 shall be entitled to make an a pplication if the application for initiation of an 
administrative investigation is supported by those producers whose collective output accounts for more than fifty per cent (50%) of total production of the like product or good among those which have 
expressed to the Investigating Authority either support for or opposition to the initiation of an 
investigation.  In addition, in or der to be entitled to request initiation of an investigation, the domestic 
producers expressly supporting the request, together w ith the complainants, shall account for at least 
twenty-five per cent (25%) of total production of the like product or good produced by the domestic 
industry.   The Investigating Authority may determine wh ether the above condition has been met using 
statistical techniques.  In the case of fragmented production involving an exceptionally large number 
of producers, sampling techniques may be used.  In  ascertaining compliance with this requirement, the 
Investigating Authority may request the accreditation of each person acting on behalf of the domestic 
industry.  Article 72.  Minimum content of the application.  The application shall be drawn up by a competent 
attorney and shall set out the arguments and grounds of fact and of law substa ntiating it.  In addition 
to the information specified in Article 28 of Decr ee Law No. 7 of 2006, the application shall contain 
at least the following information:  
(a) Particulars of the applicant; 
(b) detailed description of the product to be investigated, including the tariff 
classification, characteristics and other distinguishing particulars; 
(c) description and information regarding the domestic industry to which the applicant 
belongs; 
(d) detailed description of the like product or  good of the domestic industry and other 
distinguishing particulars; 
(e) the percentage of the like product or good of the applicant in relation to total domestic 
output of the said product in order to pr ove that the entitlement requirements have 
been met; 
(f) name and domicile of the importe rs and exporters, if known; 
(g) the volume and prices of the imports that are the subject of the application for an 
investigation and other facts and data lead ing to the presumption of the existence of 
an unfair trade practice, as well as the alleged margin of dumping or amount of the subsidy; 
(h) country of origin and source of the imports;  and 
(i) analysis, factors, data or documents show ing injury and the causal link as defined in 
this Executive Decree as a result of the imports under conditions of unfair trade 
practices.  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
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   Information and evidence that is submitted as confidential shall be clearly identified as such 
for the purposes of its classification.  The appl ication shall comply with the requirement on 
non-confidential summaries. 
 
 Any information or data which the applicant wishes to submit together with the application 
and which is to be provided by government bodies according to their competence may be deemed to 
have been filed with the competent authority if  the applicant provides reliable evidence of the 
formalities completed to obtain them. 
 
 The applicant shall provide electronic copies of  the complete application, including all its 
annexes.  The complainant shall certify that the electronic copy submitted contains the same 
information as the application and, moreover, shall be  responsible for ensuring that this information is 
contained in the version available to the public. 
 
 The Investigating Authority shall avoid all pub licity regarding the application for initiation of 
an investigation until the latter is officially initiated.  Article 73.  Initial review:  formal requirements.   After receiving the application, the Investigating 
Authority shall examine the information contained ther ein in order to determine whether or not all the 
information required pursuant to the preceding Arti cle of this Executive Decree and Article 28 of 
Decree Law No. 7 of 2006 has been included.  Article 74.  Notification of the applicant and extension.  Where the application does not comply 
with the formal requirements laid down in Decree Law No. 7 of 2006 or this Executive Decree, the 
Investigating Authority may require compliance with the requirements not met.  Likewise, even where 
all the formal requirements have been met but all th e information required has not been provided or if 
it is inaccurate or unclear, the Investigating Author ity may require that the information contained in 
the application be corrected, clarified or supple mented in order to comply with the procedure 
specified in Article 29 of Decree Law No. 7 of 2006.   This initial review shall take place within 
five (5) working days of the date of submission of the application.  At the end of this period, if a 
notification has to be made in accordance with th is Article, a period of ten (10) working days 
following such notification shall be given to meet th e requirement to correct, clarify or supplement the 
information in order to comply with the in structions of the Investigating Authority. 
 Article 75.  Rejection of the application.  After expiry of the period determined in the preceding 
Article, if the applicant has not complied with the requirement on additional information, the 
application shall be rejected and filed by means of  a reasoned decision.  A reasonable extension to the 
aforementioned period may be granted by the Inv estigating Authority, eith er upon a reasoned request 
from a party or when circumstances so warrant.   Similarly, the Investigating Authority may reject the application if the information submitted 
is false or irrelevant, or where the applicati on is ill-considered, inappr opriate or unjustified. 
 Article 76.  Communication of the application.   Until the resolution to initiate an investigation has 
been issued, the authorities, in accordance with Article 28 of Decree Law No. 7 of 2006, shall avoid 
all publicity regarding the applicati on for initiation of an investigation.   Nevertheless, after receiving a 
duly documented application that meets the formal re quirements and before initiating an investigation, 
the Investigating Authority shall directly notify the government of the country exporting the product 
under investigation, by means of the channels pr ovided in this Executive Decree.  In making such 
communications, the Investigating Authority shall act expeditiously, promptly and directly in accordance with Articles 60 and 61 of this Decree. G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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Article 77.  Invitation to consultations.  In the special case of investiga tions into subsidies, together 
with the communication indicated in the preceding Article and pursuant to Article 13.1 of the 
Agreement on Subsidies and Countervailing Measur es, the government or governments exporting the 
product under investigation shall be invited to ho ld consultations with the aim of clarifying the 
situation as to the matters referred to in Article 11. 2 of the said Agreement and arrive at a mutually 
agreed solution.  
 Likewise, throughout the period of investigati on, Members whose products are the subject of 
investigation shall be afforded a reasonable opportuni ty to continue consultations, with a view to 
clarifying the facts of the case.  Without prejudice to the obligation to afford reasonable opportunity for consultation, these provisions regarding consultations shall not prevent the competent authority 
from proceeding promptly to initiate an investigat ion, reach preliminary or  final determinations, 
whether affirmative or negative, or apply provisiona l or definitive measures, in accordance with the 
provisions of Article 13 of the Agreemen t on Subsidies and Countervailing Measures. 
 Paragraph:   In accordance with the provisions of this Ar ticle, it is particularly important that no 
affirmative determination, whether preliminary or final, be reached without reasonable opportunity 
being given for consultations.  Su ch consultations may establish the basis for proceeding under the 
provisions of Parts II, III or X of the WTO Agreement on Subsidies and Countervailing Measures. 
 
CHAPTER II 
 
OPENING AND INITIATION OF THE PROCEDURE 
 
Article 78.  Review of the application:  examination of the substance.   After the form of the 
application has been reviewed and it has been dete rmined that the application for an investigation 
received is complete, the Investigating Authority sh all undertake an examination of its substance, for 
which a period of fifteen (15) working days shall be  given to evaluate the merits of the application 
and, by means of a reasoned decision from the comp etent authority, declare the initiation or rejection 
of the administrative investigation.  During this review, the Investigating Authority shall determine 
whether or not there is sufficient evidence to warr ant the initiation of an administrative investigation 
and whether the application has been submitted on beha lf of the domestic industry in such a way that 
it meets the entitlement requirements set out in Article 71 of this Executive Decree.  
Article 79.  Rejection and filing of the application.   The competent authority shall reject the 
application submitted and terminate the investigation promptly if it has ascertained that there is not 
sufficient evidence of either dumping or subsidies and/ or injury to justify proceeding with the case, as 
provided in Articles 5.8 of the Anti-Dumping Agr eement and 11.9 of the Agreement on Subsidies and 
Countervailing Measures, respectively.  
 Likewise, in accordance with the provisions of Article 66 of this Executive Decree, the 
application shall be rejected if it is determined  that the volume of imports is negligible and, 
additionally, in the case of unfair trade prac tices, if these practices are deemed to be " de minimis ". 
 Article 80.  Prerequisites for opening an investigation.   By means of a reasoned resolution, the 
competent authority shall decide to initiate an administrative investigation after it has verified 
compliance with the formal and substantive requi rements and, in particular, that the evidence 
accompanying the application is sufficiently accura te, reliable and credible to comply with the 
necessary requirements for the imposition of measur es at a level that justifies initiation of an 
investigation.  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
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Article 81.  Requirements for ex officio opening of an investigation.   In special circumstances, the 
competent authority may decide to initiate an  investigation without having received a written 
application from the domestic industr y or on its behalf requesting initia tion of an investigation.  In 
order to be able to initiate an ex  officio investigation, the competen t authority shall only proceed when 
it has sufficient evidence of compliance with the necessary requirements for the imposition of 
measures at a level that justifies the initiation of an investigation.  
Article 82.  Resolution on initiation of an investigation.  If a review of the application shows that 
there is sufficient evidence to jus tify the opening of an investigati on, the competent authority shall 
issue a resolution initiating the corr esponding investigation procedure.  As a minimum, the resolution 
shall contain the following:  
(a) Identification of the person issuing the resolu tion, together with the place and date on 
which it was issued; 
(b) the contact details of the Investigating Authority responsible for carrying out the 
investigation; 
(c) an indication that the application and the detailed description of the documents 
accompanying it are admissible; 
(d) a detailed description of the product under i nvestigation which has been imported or 
is being imported, including the tari ff heading, characteristics and other 
distinguishing particulars; 
(e) particulars of the applicant and the percenta ge of its production of the like product in 
comparison with total domestic output of the said product; 
(f) description and details of the domestic industry, including the name or company 
name and domicile of each producer a nd other details concerning domestic 
producer(s) of the like product identified as forming part of the domestic industry; 
(g) the country or countries of origin or s ource of the product under investigation which 
is allegedly the subject of unfair trade practices; 
(h) the name, domicile and other details of local importers, exporters and foreign 
producers of the product under investigation; 
(i) description, identification and details of othe r interested parties to be considered as 
such in the investigation; 
(j) the grounds and substantiation underpinni ng the resolution, including information on 
the existence of the necessary requirements and conditions for the imposition of 
measures; 
(k) the period given to interested parties and, where applicable, to the foreign 
government(s) indicated in which to communicate the evidence they deem 
appropriate, as well as the place to which they may send their claims; G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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  (l) the investigation periods shall be determ ined and communicated.  These periods may 
be modified in duly justified situations at the discretion of the Investigating Authority 
after initiation and prior to issuing the preliminary resolution provided that the 
interested parties are once again given su fficient time to submit the information 
required for proper defence of their interests. 
Article 83.  Notification and public notice of the resolution.  The resolution to initiate an 
investigation shall be communicated to the country or countries whose pr oducts are to be investigated, 
as well as to other interested parties whose interests are known to the Investigating Authority, 
transmitting it in accordance with the Article belo w, for which purpose the Investigating Authority 
shall have a period of ten (10)  calendar days.  In addition, public notice of initiation of the 
investigation shall be given in accordance with Article 60 of this Executive Decree. 
 Article 84.  Communication.  When notifying a resolution on initiation of an administrative 
investigation, the requirements laid down in Artic le 33 of Decree Law No. 7 of 2006 must be met, 
transmitting the resolution on initiation to the interested  party or parties so that they may defend their 
interests within a period of thirty (30) calendar days as of receipt of the communication or, in the case of exporters, seven (7) calendar days following di spatch of the communication to the addressee or 
transmittal to the competent diplomatic representa tive of the exporting country or countries.  Due 
attention shall be given to any request for extension of the period of thirty (30) calendar days and, 
provided there is sufficient and reasonable proven ju stification for doing so, the extension shall be 
granted whenever feasible.   When making the communication prescribed by th is Article to known exporters, a copy of the 
application submitted shall be attached, together with the accompanying annexes, and in the case of 
an investigation initiated ex officio, the documents us ed as a basis shall also be attached.  In any case, 
the documentation to be transmitted shall be restri cted to non-confidential information in accordance 
with the provisions of this Executive Decree.   The documentation mentioned in this Artic le shall be handed over to the government 
authorities of the exporting country by means of dir ect notification to the accredited diplomatic or 
consular representation in the country in accordance with the provisions of this Executive Decree and 
with international agreements to which Panama is party.  If ther e is no accredited diplomatic or 
consular representation in the country, this comm unication may be made through the Republic of 
Panama's trade mission to the World Trade Organi zation to the accredited authority of the exporting 
country to the said Organization. 
 
CHAPTER III 
 
PROCEEDINGS AND RECEIPT OF EVIDENCE 
 Article 85.  Requests for information.  The Investigating Authority may seek from interested 
parties, government bodies and third parties not party to the proceedings, any evidence, information or 
data it deems relevant and may use forms for this purpose.  
(a) From interested parties:  dispatch of questionnaires.  It shall send a questionnaire 
requesting information to foreign producer s, exporters, importers and domestic 
producers.  The interested parties shall be given a period of thirty (30) calendar days 
in which to respond to the questionnaires.  Du e attention shall be given to any request 
for extension of this period and provided th at there is proven justification a further 
period of up to thirty calendar days shall be given.  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 41 
  
  (b) From government bodies.  The Investigating Authority may at any time request 
bodies belonging to the public administration to provide any type of information or 
technical opinions, which they must furnish within a period thirty (30) calendar days 
at the latest. 
(c) From third parties not party to the proceedings.  The Investigating Authority may at 
any time require Panamanian producers, distributors or traders of the product or good in question, as well as customs officials, agents, attorneys or consignees of the 
importers, or any other pers on it deems appropriate, to fu rnish information and data 
available to them and relevant for the purposes of the investigation. 
Paragraph:   With regard to paragraph (a) of this Ar ticle, as a general rule , the periods given to 
exporters shall be calculated from the date of recei pt of the questionnaire and for this purpose it shall 
be considered as having been received seven calendar days after the date on which it was sent to the 
addressee or handed to the competent diplomatic re presentative of the exporting Member, or in the 
case of a separate customs territory Member of the WT O, to an official representative of the exporting 
territory.  Article 86.  Submission of evidence.  In accordance with the provisions of Article 36 of Decree Law 
No. 7 of 2006, the parties may furnish their ev idence during the period for communication specified 
in Article 84 of this Executive Decree or for reply to  the questionnaires.  In those cases in which an 
extension of this period has been requested and gran ted, the period for furnis hing evidence shall also 
be extended.  Article 87.  Admissibility and rejection of evidence.  In order to decide what evidence is admissible 
and what is not, the Investigating Authority shall ex amine the relevance or otherwise of each piece of 
evidence in respect of the facts to be proved;  for th is purpose, it shall take into consideration the legal 
rules governing evidence.   The process of admissibility and rejection of evidence shall take into  account the evidence 
offered by the parties, the provisions of this Ex ecutive Decree and of Decree Law No. 7 of 2006, after 
expiry of the last period for communication, including  any extensions granted.   Nevertheless, nothing 
shall prevent the Investigating Authority from allo wing and ordering parties to furnish the evidence 
offered before expiry of this time-limit.  Article 88.  Period for examining evidence.  After it has been decided wh at evidence is admissible, 
it shall be furnished within a period not exceeding thir ty (30) calendar days as of the end of the period 
for communication, as indicated in Article 36 of D ecree Law No. 7 of 2006.  This period may be 
extended by the Investigating Authority in light  of the requirements applicable in each case. 
  To further the proceedings, the Investigating Authority may likewise at any time request any 
type of information or technical opinions from any of the bodies belonging to the public 
administration, which they must furnish within thirty (30) calendar days at the latest. 
 
 Without prejudice to the provisions on protection of confidential information, the evidence presented shall be placed in the file at the disposal  of other interested parties taking part in the 
investigation that so request.  
Article 89.  Evidence to further the proceedings.  To further the proceedings, the Investigating 
Authority may require the communication of any of the types of evidence prov ided in Article 51 of 
this Executive Decree or expansion of the eviden ce already received.  Evidence for the purpose of G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
Page 42 
  
  furthering the proceedings may include entirely new ev idence in addition to alr eady existing evidence.  
The resolution requiring the furnishing of such eviden ce shall also set the time-limit within which the 
requirement must be met and, if it is not possibl e to determine this, it shall be complied with 
promptly.  This type of evidence may not be exam ined if it would exceed the maximum time available 
for completion of the investigation in the terms permitted by this Executive Decree. 
 Article 90.  Sessions for the purpose of furnishing evidence.   The evidence offered by the 
interested parties and duly declared admissible, as well as the evidence ordered by the administration, 
shall be furnished in the course of sessions duly convened for this purpose.  The parties and their 
attorneys shall collaborate in providing the evid ence decreed as prescribed in Article 144 of 
Law No. 38 of 2000.  Article 91.  Presence and participation of interested parties.   The Investigating Authority shall 
communicate to interested parties sufficiently in  advance the place, date and time for submitting 
evidence, where appropriate notifying the interested pa rty that it may appoint an attorney or experts to 
assist it.  When submitting evidence, due account shall be taken of whether or not the information to 
be provided at the session is confiden tial in order to decide whether or not to restrict access to the 
session by other interested parties.  In order to ma ke this decision, the party requesting that the 
information be treated as confidential shall justify its request in accordance with Article 53 above and 
the Investigating Authority may prepare a non-conf idential summary of the evidence submitted for 
inclusion in the file open to the public.  Article 92.  Oral evidence.   Oral evidence shall be given before the Investigating Authority.  The 
Investigating Authority may limit the furnishing of  oral evidence by each party to the extent it 
considers useful and necessary in the light of the fact s to be investigated.  If, for justified reasons, the 
witness does not appear when the evidence is to be submitted, he may be conve ned one other time for 
this purpose, otherwise the evidence shall be deemed to have been withdrawn. 
 When it is not possible to complete the s ubmission of oral evidence during the hearing 
convened for this purpose, it may be continued at a subsequent date set within a reasonable time by 
the official responsible for the case. 
 
Article 93.  Technical report on evidence.   The Investigating Authority shall prepare a preliminary 
technical report and a final technical report ev aluating the evidence submitted and examined during 
the investigation.  These reports shall incl ude, as appropriate, financ ial, economic, accounting 
calculations and any other calculations necessary in order to analyse the information collected on the 
facts investigated. 
  These technical reports shall be submitted in or der to be able to make the preliminary and 
final determinations.  The preliminar y report shall be prepared on the basis of on the information to be 
found in the application and may take into account the replies to the questio nnaires sent out by the 
Investigating Authority.  The final report shall be  prepared after all the evidence required to be 
submitted has been examined.  Each of these reports shall be prepared in two versions, one for the 
public and one confidential.  The public version shall be included in the public file and the data shall 
be expressed in terms that respect the confidentiality of the information that h as been declared to be 
confidential;  the confidential version may not be di sclosed and shall remain in the confidential file. 
  G/ADP/N/1/PAN/2/Suppl.1 
 G/SCM/N/1/PAN/2/Suppl.1  G/SG/N/1/PAN/2/Suppl.1 
 Page 43 
  
  CHAPTER IV 
 
PRELIMINARY DETERMINATION 
 
Article 94.  Grounds for determination.   Following the public notice of initiation of an investigation 
and after having given the parties an opportunity to  express their views on the initiation and after the 
minimum period of 60 days following the initiation of  the investigation has expired, a preliminary 
determination may be issued. 
 
Article 95.  Contents of the preliminary determination.   Pursuant to Articles 12.2 of the 
Anti-Dumping Agreement and 22.3 of the Agreemen t on Subsidies and Countervailing Measures, the 
Investigating Authority shall mention in the preliminary determination all the findings and 
conclusions reached on all issues of fact and of la w considered relevant and for this purpose shall 
evaluate the arguments put forward during the proceed ings and the evidence furnished.  When making 
the preliminary determination, it shall be decide d whether or not to recommend provisional measures 
in accordance with the provisi ons of this Executive Decree. 
 Article 96.  Evaluation of the level of certainty required.   The level of certainty required in order to 
prove the facts investigated shall be in proportion to the progress made in the investigation.  The 
examination of the evidence furnished by the parties shall not be a requirement in order to issue this 
preliminary determination.  
CHAPTER V 
 
PROVISIONAL MEASURES 
 Article 97.  Conditions and requirements.   During the investigation period and after the preliminary 
determination has been issued, the Investigating Authority may, by means of a reasoned decision 
pursuant to Article 45 of Decree Law No. 7 of 200 6, recommend to the Cabinet Council that it adopt 
such measures. 
 In investigations into unfair trade practices,  provisional measures may only be applied if: 
 
(a) An investigation has been initiated in accordance with the provisions of this 
Executive Decree and other applicable regul ations, public notice has been given to 
that effect and Member countries of the WT O concerned and interested parties have 
been given adequate opportunities to su bmit information and make comments; 
(b) a preliminary determination has been made of an unfair trade practice and consequent 
injury to a domestic industry caused by the imports that are the subject of the unfair practice; 
(c) the competent authority judges such meas ures necessary to prevent injury being 
caused during the investigation; 
(d) provisional measures shall not be applied s ooner than sixty (60) calendar days from 
the date of the resolution on initiation of the administrative investigation. 
Article 98.  Duration of the measures.   Provisional measures shall only be applied for as short a 
period as possible, in accordance with the following provisions:  G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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  (a) In dumping investigations, the period shall be determined in accordance with 
Article 7.4 of the Anti-Dumping Agreement and may not exceed four months;  nevertheless, upon request by exporters re presenting a significant percentage of the 
trade involved, this period may be extende d up to six months.  Moreover, when the 
Investigating Authority examines whether a duty lower than the margin of dumping 
would be sufficient to remove injury, these periods may be six and nine months, respectively. 
(b) In investigations into subsidies, the prov isions of Article 17.4 of the Agreement on 
Subsidies and Countervailing Measures rega rding the period shall apply and it may 
not exceed four months. 
Article 99.  Assessment for the purpose of applying a lower duty.   For the purposes of the 
preceding Article and at the request of a party or ex  officio, the Investigating Authority may decide 
that a lower duty should be applied, provided that th e circumstances so permit, particularly in the light 
of the evidence existing at the time of issuing the preliminary determination. 
 Article 100.  Request for extension.   Any request for extension of provisional anti-dumping 
measures made by exporters and submitted in acco rdance with Article 98 shall be submitted during 
the period of application of the measure and up to ten (10) working days before its expiry. 
 
Article 101.  Restrictions.   Provisional countervailing duties or  provisional anti-dumping duties may 
not be simultaneously adopted or imposed in or der to resolve the same situation resulting from 
investigations into subsidies or dumping.  
CHAPTER VI 
 
UNDERTAKINGS 
 Article 102.  Prior assumptions.   In investigations into dumping or subsidies, exporters may offer 
undertakings, as provided by Article 8 of the An ti-Dumping Agreement and Article 18 of the 
Agreement on Subsidies and Countervailing Measures.   Undertakings shall not be sought or accepted 
unless a preliminary affirmative determination of the existence of an unfair trade practice and of the 
injury caused by it has been made.  Article 103.  Communication, offer and content of undertakings.   Undertakings may consist of 
ceasing exports at dumped or subsidized prices or revising and increasing export prices.  Such 
increases shall not exceed the amount necessary to offset the unfair tr ade practice in relation to the 
amount of the subsidy or the margin of dumping, as appropriate.  The price increases should be lower 
than the amount of the subsidy or the margin of dum ping if this suffices to eliminate the injury to the 
domestic industry.  
(a) Offers by exporters.  Offers by exporters may be made individually or jointly;  the 
offer shall state that the undertakings proposed are being made voluntarily. 
(b) Offers by the exporting government.  In th e special case of subsidies investigations, 
the exporting government may offer undertak ings with a view to eliminating or 
limiting the subsidy or adopt other measures to eliminate the prejudicial effects of the subsidy.  G/ADP/N/1/PAN/2/Suppl.1 
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  (c) Suggestions on undertakings.  The Inv estigating Authority may suggest price 
undertakings but shall not oblige any exporter to accept them.  The fact that an exporter does not offer such undertakings or  does not accept the invitation to make an 
undertaking shall in no way prejudge the examination of the case. 
Article 104.  Consultation of the domestic industry.   After the Investigating Authority has received 
the undertaking, it shall transmit it to the domestic industry.  In its communication, it shall describe the content of the offer in general terms and shall give domestic producers a period of 
ten (10) working days to express the views they deem  appropriate for the defence of their individual 
or joint interests. 
 Article 105.  Acceptance or rejection of undertakings.   In a reasoned decision, the Investigating 
Authority shall accept the offer of undertakings when  it is convinced that their implementation would 
eliminate the prejudicial effect of the dumping or the subsidy, as applicable.  Nevertheless, pursuant 
to Articles 8.3 of the Anti-Dumping Agreement and 18.3 of the Agreement on Subsidies and 
Countervailing Measures, undertakings offered shall not be accepted if the Investigating Authority 
considers their acceptance impractical, for example, if the number of actual or potential exporters is 
too great, or for other reasons, including reasons of general policy.  Should the case arise and where 
practicable, it shall provide to the exporter the reas ons which have led it to consider acceptance of an 
undertaking as inappropriate, and shall, to the extent possible, give the exporter an opportunity to 
make comments thereon. 
 Article 106.  Suspension or termination of the investigation.   The investigation may be suspended 
or terminated without the imposition of provisional or definitive measures if the competent authority accepts the offer of satisfactory price undertakings.  Where the undertakings do not cover all the 
exporters and producers, the inves tigation shall continue in the case  of those which have not accepted 
undertakings.  Paragraph:   The word "may" shall not be interprete d to allow the simultaneous continuation of 
proceedings with the implementation of price unde rtakings, except as provided in this Executive 
Decree. 
 
Article 107.  Continuation of the investigation.   An investigation into the existence of an unfair 
trade practice and injury shall be terminated if the exporter so desires or the Investigating Authority so 
decides according to the provisions of Articles 8.4 of the Anti-Dumping Agreement and 18.4 of the Agreement on Subsidies and Countervailing Measures.  In such a case, if a negative determination of 
the unfair trade practice or injury is made, the undert aking shall automatically lapse.  In the event that 
an affirmative determination of the existence of th e unfair practice and injury  is made, the undertaking 
shall continue consistent with its terms and the provisions of this Executive Decree. 
 Article 108.  Periodic information.   The Investigating Authority may require public administration 
bodies and any exporter from whom an undertaki ng has been accepted periodically to provide 
information relevant to the fulfilment of such an undertaking and to permit verification of pertinent 
data.  Article 109.  Non-fulfilment of an undertaking.   If an undertaking is not fulfilled, the competent 
authority may take action pursuant to Article 8.6 of the Anti-Dumping Agreement or Article 18.6 of 
the Agreement on Subsidies and Countervailing M easures, as applicable, and recommend that the 
Cabinet Council take prompt action, which may consist of immediate application of provisional 
measures using the best information available.  In such cases, definitive duties may be levied in 
accordance with this Executive Decree on products entered for consumption not more than 90 days G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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  before the application of such provisional measur es, except that any retroactive assessment shall not 
apply to imports entered before violation of the undertaking. 
 
CHAPTER VII 
 
FINAL HEARING 
 Article 110.  Object and purpose of the hearing.   The object and purpose of the hearing is to inform 
and hear parties to the proceedings regarding th e essential facts under consideration and used as a 
basis for the decision on whether or not to reco mmend the application of definitive measures. 
 Article 111.  Convening of the final hearing.   After the evidence has been submitted and before 
issuing a resolution terminating the administrative i nvestigation, pursuant to  Article 41 of Decree Law 
No. 7 of 2006, the Investigating Authority shall su mmon all interested parties to a hearing.  This 
invitation shall be sent to interested parties that ha ve notified an address for receiving notifications in 
accordance with Article 60 of this  Executive Decree no less than seven  (7) calendar days before the 
date of the said final hearing so that th ey may effectively defend their interests. 
 Article 112.  Communication of essential facts.   In order to implement Article 41 of Decree Law 
No. 7 of 2006, the Investigating Authority shall pr epare a report on the essential facts which serve as a 
basis for the decision on whether or not to recomme nd definitive measures and this shall be sent to all 
interested parties at the time of convening the hearing referred to in the preceding Article. 
 Article 113.  Participation in the hearing.   In investigations into unf air trade practices, a private 
hearing shall be held in which onl y those subjects that have been accepted as interested parties or third 
parties with an interest may participate, in accordance with the decisions of the Investigating 
Authority.  Pursuant to the provisions of Article 41 of the Decree Law, representatives of the Ministry 
of Agricultural Development, the Ministry of the Economy and Finance, and the Ministry of Trade and Industry may also take part in the hearing.  
Article 114.  Procedure at the hearing.   At the hearing, the official appointed for this purpose shall 
initiate proceedings by verifying the identity of the parties, which may attend themselves or be 
represented by a competent attorney.  The order and time for each one's participation shall be 
determined in advance by the Investigating Auth ority taking into account the number of parties 
wishing to participate and any right of reply by interested parties.  The absence of one or more 
interested parties or other persons invited to attend shall not prevent the holding of the hearing.  When 
allotting the time allowed for participation by those pa rticipating in the hearing, the official shall take 
into consideration the need to guarantee prope r defence of the interests concerned by the 
investigation.  The hearing shall be recorded , transcribed and incorporated into the file. 
 Article 115.  Presentation of final arguments.   After the hearing has been concluded and the 
recording referred to in the preceding Article has been  incorporated into the file, the interested parties 
shall be given the period of three (3) working days  provided in Article 41 of Decree Law No. 7 of 
2006 in which to submit their final arguments in defence of their interests and to express their opinions.  These final arguments shall be submitt ed in writing and also by electronic means. 
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  CHAPTER VIII 
 
DEFINITIVE DETERMINATION 
 
Article 116.  Definitive determination.   After having received the claims, in accordance with 
Article 42 of Decree Law No. 7 of 2006, the compet ent authority shall have ten (10) working days 
within which to issue a reasoned resolution termin ating the administrative investigation.  This 
resolution shall include the definitive determ ination and, where appropriate, shall make a 
recommendation to the Cabinet Council on the appli cation of definitive measures.  This time-limit 
may be extended by the competent authority in the light of the speci al conditions applicable to each 
investigation so that its decision is properly presented.  Article 117.  Level of imposition of measures.   When issuing the recommendation on imposition of 
definitive measures, the Investigating Authority sh all indicate the level at which it considers the 
definitive measures should be imposed according to each  investigation.  Pursuant to Article 19 of 
Decree Law No. 7 of 2006, the measure recommended  may not exceed the margin of dumping or the 
amount of the subsidy established in the final determination. 
  In dumping investigations and where possible in  accordance with the particular conditions of 
each investigation, individual measures shall be determined for exporters according to their special 
conditions and, where appropriate , exemptions from the application of such measures shall be 
indicated.  Pursuant to Article 9.5 of the Anti-Du mping Agreement, in such investigations residual 
measures shall be imposed on imports from the country or countries investigated in order to prevent 
circumvention of the measures.  The residual measure shall be determined at a level situated between 
the highest and lowest levels of the measure;  ne vertheless, when imposing it, consideration may be 
given to whether or not the exporters to which the r esidual measure is to apply have cooperated or not. 
 In subsidies investigations, a total amount of s ubsidy per country shall be  determined in such 
a way that, if it is so decided, a countervailing dut y may be fixed without di scrimination on imports 
declared subsidized and causing injury irrespec tive of their source, excluding imports from sources 
that have renounced the subsidies in question or have accepted undertakings in accordance with the 
provisions in this Executive Decree. 
 Article 118.  Examination of application at a lower level.   The Investigating Authority may 
examine use of a lower duty provided that the circ umstances so permit and taking into account criteria 
that it deems timely and relevant. 
 
Article 119.  Content of the final determination.   The competent authority's final resolution shall 
include a final determination which shall contain at  least the following information in addition to 
those aspects indicated in Article  59 of this Executive Decree: 
 
(a) Information identifying the applicant and a summary of the arguments included in the 
application; 
(b) a full description of the product that is the subject of the investigation; 
(c) information on the date of initiation of the investigation and, where applicable, the 
extension of the period of investigation; 
(d) a brief summary of the main facts taken as proven and used as a basis for the 
preliminary determination; G/ADP/N/1/PAN/2/Suppl.1 
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  (e) whether provisional measures have been im posed and details on their application; 
(f) a summary of the findings of the examinati on of evidence, as well as identification of 
the evidence that has been rej ected and the reasons therefor; 
(g) if undertakings have been made, a brief me ntion of them, as well as whether or not 
they were accepted or rejected; 
(h) a brief summary of the parties' final arguments regarding the facts on which the 
investigation was based; 
(i) the main findings of the Investigating Authority during the course of the investigation 
on the existence of conditions for the impos ition of definitive measures depending on 
whether it is a dumping or subsidies investigation, as governed by this Executive Decree and the applicable regulations; 
(j) indication and evaluation of the arguments on whether or not it is in the public 
interest to apply measures; 
(k) if there has been an analysis  of application of a lower duty, an explanation of the 
method used and the conclusions reached; 
(l) the recommendation to the Cabinet Council on  whether or not to impose definitive 
anti-dumping or countervailing duties. 
Article 120.  Final recommendation.   The recommendation referred to in paragraph (l) of the 
preceding Article shall be transmitted to the Ca binet Council as prescribed in Article 43 of 
Decree Law No. 7 of 2006 and shall indicate whethe r definitive measures should be imposed and the 
form they should take, as well as the details need ed for their proper application.  If provisional 
measures have been applied, there shall be a recommendation on whether or not to confirm their 
application and on the retroactivity of the definitive measures.  
 After the Cabinet Council has received the reso lution from the competent authority, it shall 
decide whether to accept or reject the recommendati on and shall issue the relevant decree for this 
purpose.  
TITLE VII 
 
SPECIAL PROCEDURES FOR THE APPLICATION OF MEASURES 
AGAINST UNFAIR TRADE PRACTICES 
 
CHAPTER I 
 
COMMON PROVISIONS 
 Article 121.  Types of procedures.   New shipper reviews, intermedia te reviews and consideration of 
extensions shall be considered special procedures.  Such procedures are special and shall be dealt with 
in abbreviated form in accordance with provisions of this Chapter. 
 
Article 122.  Initiation at the request of a party or ex officio.   A new shipper review may only be 
initiated at the request of a party, whereas the re view of measures and cons ideration of extensions  G/ADP/N/1/PAN/2/Suppl.1 
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  may be the subject of procedures at the request of  a party or on the initiative of the Investigating 
Authority.  
Article 123.  Applications.   If an application is submitted by an interested party, it shall be drawn up 
by a competent attorney and shall set out the argu ments and grounds of fact and of law substantiating 
it.  If there are numerical data, the formats proposed by the Investigating Authority shall be used and 
they shall be presented on the compatible co mputer media indicated by the Authority. 
 
Article 124.  Formalities and procedure.   The procedures covered by this Title shall be dealt with 
by means of a file kept for this purpose as a separa te volume but as part of the investigation that has 
led to imposition of the measures serving as a basi s for any of the procedures described herein. 
  After receiving the application, the Investigati ng Authority shall examine its contents in order 
to determine whether or not all the information re quired for each different procedure pursuant to this 
Title has been included.  Where the application do es not comply with the formal requirements, the 
applicant may be asked to provide the missing info rmation.  Likewise, even where all the formal 
requirements have been met but all the informat ion required has not been provided or if it is 
inaccurate or unclear, the Investigating Authority ma y require that the information contained in the 
application be corrected, clarified or supplemented.   This initial review shall take place within 
five (5) working days of the date of submission of the application.  At the end of this period, if a 
notification has to be made in accordance with th is Article, a period of ten (10) working days 
following the date of the communication shall be a llowed to respond to the notification or to the 
requirement to correct, clarify or supplement the info rmation in order to comply with the instructions 
of the Investigating Authority.  If its request is not met within the specified time-limit, the application 
shall be rejected and filed without any furthe r procedure.  A reasonable extension to the 
aforementioned period may be granted by the Invest igating Authority either upon a reasoned request 
from a party or when circumstances so warrant.   Similarly, an application shall be rejected if th e information submitted is false or irrelevant or 
in the case of ill-considered, inappropriate or unjustified applications. 
 
Article 125.  Initiation and conv ening of the interested parties.   After the review of the form has 
been completed and it has been determined that th e application is complete in accordance with the 
preceding Article, the Investigating Authority shall undertake an examination of the substance, for 
which a period of thirty (30) working days shall be gi ven to evaluate the merits of the application and, 
by means of a reasoned resolution, declare that the administrative investigatio n has been initiated or 
rejected.   When the competent authority has initiated a special implementation procedure, either as a 
result of an application or on its own initiative, th e Investigating Authority shall communicate it to the 
interested parties concerned depending on the form of  investigation, whose details are contained in the 
administrative file on the investigation resulti ng in imposition of the measure and which have 
indicated an address for receiving notifications.  Wh en communicating the initiation, the interested 
parties shall be given a period of fifteen (15) calendar days to contest it, furnish evidence and provide any defence they consider relevant to their interest s.  An appeal may be made against the resolution 
initiating the investigation in accordance with  the provisions of this Executive Decree. 
 
Article 126.  Request for information.   The Investigating Authority may request the interested 
parties concerned, government bodi es and third parties not party to the proceedings to provide 
evidence, information and data it deems relevant , for which purpose it may use the questionnaires or G/ADP/N/1/PAN/2/Suppl.1 
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  forms it deems appropriate.  The provisions in Title VI, Chapter III, on the examination and receipt of 
evidence shall apply as appropriate to special implementation procedures.  
Article 127.  Submission of evidence.   After the period for offering evidence has expired and after 
having taken a decision on which evidence would be  admissible, the evidence required shall be 
submitted within a period not exceeding thirty (30) cal endar days of the date of expiry of the period 
allowed.  This period may be extended by the Inv estigating Authority in t hose cases in which there 
are problems in completing the evidential stage.  The parties called on to participate in the 
proceedings and their attorneys shall colla borate in furnishing the evidence required. 
Article 128.  Verification of the information.   The evidence submitted with the application or 
offered in the response shall clearly indicate the sources used:  identification of the accounts ledgers, 
databases, names of the publications and any other re levant information facilitating its verification.  
The Investigating Authority shall select the approp riate means for verifying the information when it 
considers necessary and appropriate. 
 Article 129.  Final allegations.   After all the evidence required ha s been examined, the file shall be 
made available to the parties by means of a reso lution that shall be duly communicated, allowing a 
period of five (5) working days for review of the f ile and the evidence therein.  At the end of this 
period, the parties shall have an opportunity to put forward final allegations in writing in which they 
shall set out their arguments and shall be given a ma ximum period of three (3) working days for this 
purpose.  In exceptional cases, the Investigating Auth ority may receive these allegations orally in the 
course of a hearing convened for this purpose;  these  allegations shall nevert heless be transcribed and 
incorporated into the file. 
Article 130.  Resolution.   If the outcome of the investigation leads to a determination that the 
necessary conditions for modifying the application of the measures, extending them, establishing new 
conditions for a new shipper or for terminating their application do not exist, the application shall be 
rejected and filed.  If, on the other hand, there are sufficient grounds, the competent authority shall 
issue a resolution recommending to the Cabinet Council the modification of application of the measures, their extension, the establishment of new conditions for a new shippe r or the termination of 
their application. 
 
Article 131.  Appeals.   An appeal may only be made against the resolution indicated in the preceding 
Article in accordance with Article 93 of Decree Law No. 7 of 2006.  
CHAPTER II 
 
NEW SHIPPER REVIEW 
 Article 132.  Purpose of the procedure.   The purpose of this procedure is to give to those exporters 
that did not participate in the investigation into unfair trade practices resulti ng in the measure because 
they did not export like products during the period of the investigation and were not or had not been 
linked to any of the parties to which the measures were applied an opportunity for an examination of 
their exports to determine whether or not a speci al and different measure should apply to them. 
 Article 133.  Admissibility.   Pursuant to Article 23 of Decree Law No. 7 of 2006, Article 9.5 of the 
Anti-Dumping Agreement and Article 19.3 of the Agreement on Subsidies and Countervailing 
Measures those exporters which prove that they did not export like products during the period of 
investigation into dumping or subsidies and were not  or had not been linked to any of the parties to  G/ADP/N/1/PAN/2/Suppl.1 
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  which the measures were applied may request the initi ation of such a review.  Applications from new 
shippers shall not be accepted until de finitive measures have been imposed. 
 
Article 134.  Content of the application.   The exporter's application shall contain at least the 
following:  
(a) Particulars of the applicant, including name and personal identity number or company 
name and registration number, domicile, postal address if it is not the same as that of 
the domicile, fax number, e- mail address or website. 
(b) Declaration of whether it is a manufacturing or trading enterprise or whether it is 
engaged in both activities and an indication of the type of legal structure used by the applicant enterprise as given in the place of  its registration.  For example, an 
indication whether it is a public limited company, limited liability company, 
partnership, etc.  An indication as to wh ether there is any relationship with other 
enterprises exporting goods to Panama. 
(c) Main line of business or principal activity, id entifying all the products it trades and/or 
manufactures.  In the case of products like those on which measures have been 
imposed, a description of the production pro cess in the fullest possible detail and an 
illustrative chart, the physical, chemical, t echnical specifications of the product and 
its uses and if possible an illustrative cat alogue, the inputs used, and the technical 
standards met by the products under investigation. 
 Any information or data which the applicant wishes to submit together with the application 
and which is to be provided by government bodies according to their competence may be deemed to 
have been filed with the Investigating Authority if  the applicant provides reliable evidence of the 
formalities completed to obtain them. 
  Where the information presented includes c onfidential data, it shall be submitted in 
two versions:  confidential and p ublic.  These shall be identical ex cept that the public version shall 
contain a non-confidential summary of the informatio n that has been omitted.  This summary should 
express clearly the data deemed confidential in su ch a way as to permit an understanding of the 
information omitted, for example, charts without numbers may be used, as well as explanations in 
terms of percentages or other forms.  The public information shall be made available to the other 
parties concerned by the investigation.  Information shall be classified as confidential, if so requested, 
in accordance with the relevant prov isions in this Executive Decree. 
 
Article 135.  Communications to interested parties.   If the application is complete, it shall be 
decided to initiate a review.  The order to initia te a review shall only be communicated to those 
domestic producers which requested the imposition of  the measures under review to allow them to 
defend their interests and furnish the evidence they deem relevant. 
 Article 136.  Suspension of measures during the review.   In accordance with Article 9.5 of the 
Anti-Dumping Agreement, no measures shall be le vied on imports from exporters or producers that 
have requested the review while the review is being carried out.  Nevertheless, the competent 
authority may authorize that the customs valuati on be suspended and/or guarantees be provided to 
ensure that, should such a review result in the impos ition of measures in respect of such producers or 
exporters, duties can be levied retroactivel y to the date of initiation of the review. 
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  Article 137.  Imposition of measures or exemption.   If the findings of the investigation lead to the 
conclusion that the exporter meets the necessar y requirements, the imposition of an individual 
measure shall be ordered or it shall be decided that no measure should be applied to the exporter 
concerned. 
 
CHAPTER III 
 
REVIEW OF MEASURES 
 
Article 138.  Requirements for review of measures.   On the basis of Article 20 of Decree Law 
No. 7 of 2006, Article 11.2 of the Anti-Dumping Agreement or Article 21.2 of the Agreement on 
Subsidies and Countervailing Measures, any interest ed party may request a review of the measures 
and for this purpose shall submit all positive evid ence concerning the need for review and provided 
that a reasonable time has elapsed since th e determination of the definitive measure. 
  The provisions of this Chapter shall apply to the review of price undertakings.  Article 139.  Content of the application.   An application for review shall contain at least the 
following: 
 
(a) Particulars of the applicant, including name and personal identity number or company 
name and number of registration, domicile, postal address if it is not the same as that 
of the domicile, fax number, e-mail address or website, and its status as an interested party in accordance with the provisi ons of this Executive Decree. 
(b) A clear indication of the measure whose re view is requested, the period during which 
it has been in force and the circumstan ces which the applicant considers justify 
review of the measure or the price undertaking, specifying how it wishes the review to be carried out. 
(c) Sufficient evidence to support the informati on on the alleged change in circumstances 
or conditions that originally ju stified the imposition of measures. 
 In order to facilitate the submission of the application, the Investigating Authority may 
prepare forms to guide or direct the applicant rega rding the type, amount and detail of the information 
required.   Any information or data which the applicant wishes to submit together with the application 
and which is to be provided by government bodies according to their competence may be deemed to 
have been filed with the Investigating Authority if  the applicant provides reliable evidence of the 
formalities completed to obtain them.   Where the information presented includes c onfidential data, it shall be submitted in 
two versions:  confidential and p ublic.  These shall be identical ex cept that the public version shall 
contain a non-confidential summary of the informatio n that has been omitted.  This summary should 
express clearly the data deemed confidential in su ch a way as to permit an understanding of the 
information omitted, for example, charts without numbers may be used, as well as explanations in 
terms of percentages or other forms.  The public information shall be made available to the other 
parties concerned by the investigation.  Information shall be classified as confidential, if so requested, 
in accordance with the relevant prov isions in this Executive Decree. 
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  Article 140.  Communication to interested parties.   If the application is complete, it shall be 
decided to initiative a review and this  shall be notified to all interested parties listed in the file so that 
they may defend their interests and furnish the evid ence they deem necessary.  Enterprises which, 
although not classified as interested parties prior to the review became interested parties at the time of 
its initiation, may also participate.  Article 141.  Review of the measures.   When a review of the measures is requested based on the 
existence of the requirements indicated in Article  138 of this Executive Decree, the Investigating 
Authority shall examine and determine whether or not it is necessary to maintain the duty in order to 
offset the dumping or subsidy or whether the injury would be likely to continue or recur if the duty 
were removed or modified, or both.   If, as a result of this review, it is determin ed that the measure is no longer warranted and 
should be annulled, abolished or at least modified, a report shall be sent to the Cabinet Council so that 
it may consider the elimination or immediate annulment of the said duty or the corresponding 
modification, as appropriate.   In order to be able to request such a review , at least one year must have elapsed since the 
Cabinet Council ordered the im position of definitive measures. 
 
CHAPTER IV 
 
REVIEW OF EXTENSIONS 
 
Article 142.  Requirements for submission.   Pursuant to Article 19 of Decree Law No. 7 and 
Article 122 above, measures against unfair trade practi ces may be extended at the request of a party or 
ex officio.  Where consideration is given to an ex tension as a result of an application, this shall be 
adequately substantiated and submitted no less than one hundred an d twenty (120) calendar days prior 
to expiry of the measure.  In accordance with  Article 11.3 of the Anti-Dumping Agreement and 
Article 21.3 of the Agreement on Subsidies and Countervailing Measures, the duty may remain in 
force pending the outcome of such a review. 
  Pursuant to Article 11.3 of the Anti-Dumping Ag reement, the applicant shall prove that it has 
the status of interested party in conformity with  the provisions of Article 8(g) of this Executive 
Decree. 
 
 The fact of not being an interested party in th e original investigation that led to the imposition 
of measures shall in no way prevent a new producer fro m being given such status and, if it meets the 
representativeness requirements, being entitled to act as an applicant.   Applications for extension shall be dealt with  by the Investigating Au thority, in accordance 
with the provisions of this Chapter and Title VII, Special procedures for the application of measures 
against unfair trade practices.  Article 143.  Participation by interested parties.   If the application is complete, it shall be decided 
to initiate a review.  This shall be notified to all in terested parties listed in the file so that they may 
defend their interests and furnish the evidence they  deem necessary.  Enterprises which, although not 
classified as interested parties prior to the review b ecame interested parties at the time of its initiation, 
may also participate.  G/ADP/N/1/PAN/2/Suppl.1 
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  Article 144.  Content of the application.   An application for review shall contain at least the 
following:  
(a) Particulars of the applicant, including name and personal identity number or company 
name and registration number, domicile, postal address if it is not the same as that of 
the domicile, fax number, e-mail address or website, and its status as an interested party in accordance with the provisi ons of this Executive Decree. 
(b) A clear indication of the measure whose extension is requested, the period during 
which it has been in force and the circ umstances which the applicant considers 
justifies extension of the measure. 
(c) Sufficient evidence to support the applic ation for extension of the measure. 
 In order to facilitate the submission of the application, the Investigating Authority may 
prepare forms to guide or direct the applicant rega rding the type, amount and detail of the information 
required. 
  Any information or data which the applicant wishes to submit together with the application 
and which is to be provided by government bodies according to their competence may be deemed to 
have been filed with the Investigating Authority if  the applicant provides reliable evidence of the 
formalities completed to obtain them. 
 
 Where the information presented includes c onfidential data, it shall be submitted in 
two versions:  confidential and p ublic.  These shall be identical ex cept that the public version shall 
contain a non-confidential summary of the informatio n that has been omitted.  This summary should 
express clearly the data deemed confidential in su ch a way as to permit an understanding of the 
information omitted, for example, charts without numbers may be used, as well as explanations in 
terms of percentages or other forms.  The public information shall be made available to the other 
parties concerned by the investigation.  Information shall be classified as confidential, if so requested, 
in accordance with the relevant prov isions in this Executive Decree. 
 Article 145.  Requirements and period of extension.   Where it is determined that elimination of the 
measure would lead to continuation or recurrence of  the injury and the conditions that caused it, a 
recommendation may be made to the Cabinet Council th at an extension of up to five (5) years should 
be granted.  
TITLE VIII 
 
GENERAL SAFEGUARDS PROCEDURE 
 
CHAPTER I 
 
PHASE PRIOR TO INITIATING AN INVESTIGATION 
 
Article 146.  Application.   Investigations intended to de termine the existence, degree and 
requirements necessary for the imposition of a safe guards measure shall be initiated in accordance 
with Article 61 of Decree Law No. 7 of 2006 subj ect to a written application made by the domestic 
industry or on its behalf, except in those cases in which special circumstances justify the ex officio 
initiation of an investigation. 
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  Article 147.  Entitlement.   All domestic producers of like or directly competitive products according 
to the definition in Article 52.4 of Decree Law No. 7 of 2006 shall be entitled to make an application 
if, when applying for initiation of an administ rative investigation, th ey represent at least 
twenty-five per cent (25%) of total production of th e like or directly competitive product produced by 
the domestic industry. 
 The Investigating Authority may determine wh ether the above condition has been met, using 
statistical techniques.  In the case of fragmented production involving an exceptionally large number 
of producers, sampling techniques may be used.  In  ascertaining compliance with this requirement, the 
Investigating Authority may request the accreditation of each person acting on behalf of the domestic 
industry.  Article 148.  Minimum content of the application.   The application shall be drawn up by a 
competent attorney and meet the requirements laid  down in Article 65 of Decree Law No. 7 of 2006 
and shall set out the arguments and grounds  of fact and of law substantiating it. 
  Any information or data which the applicant wishes to submit together with the application 
and which is to be provided by government bodies, according to their competence, may be deemed to 
have been filed with the competent authority if  the applicant provides reliable evidence of the 
formalities completed to obtain them. 
 
 The applicant shall provide electronic copies of  the complete application, including all its 
annexes.  The complainant shall certify that the electronic copy submitted contains the same 
information as the application and, moreover, shall be  responsible for ensuring that this information is 
contained in the version available to the public. 
 
 In order to facilitate the submission of the application, the Investigating Authority may 
prepare forms to guide or direct the applicant rega rding the type, amount and detail of the information 
required.  The application shall contain at least the following:  
(a) Particulars of the applicant; 
(b) detailed description of the product to be investigated, including the tariff 
classification, characteristics and other distinguishing particulars; 
(c) description and information regarding the domestic industry to which the applicant 
belongs; 
(d) detailed description of the like or di rectly competitive product or good of the 
domestic industry and other di stinguishing particulars; 
(e) the percentage of the like or directly co mpetitive product or good of the applicant in 
relation to total domestic output of the said product; 
(f) name and domicile of the importe rs and exporters, if known; 
(g) the volume and prices of the imports that are the subject of the application for an 
investigation; 
(h) country of origin and source of the imports;  and G/ADP/N/1/PAN/2/Suppl.1 
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  (i) analysis, factors, data or documents showing serious injury and the causal link as 
defined in this Executive D ecree as a result of the impor ts under conditions of unfair 
trade practices. 
 Information and evidence that is submitted as confidential shall be clearly identified as such 
for the purposes of its classification.  The appl ication shall comply with the requirement on 
non-confidential summaries.   The Investigating Authority shall avoid all pub licity regarding the application for initiation of 
an investigation until the latter is officially initiated. 
 Article 149.  Initial review:  formal requirements.   After receiving the application, the Investigating 
Authority shall proceed in accordance with Artic le 6.7 of Decree Law No. 7 of 2006 and shall 
examine the information contained in the applicati on in order to determine whether or not all the 
information has been included. 
  Where the application does not comply with  the formal requirements laid down in the 
Decree Law or this Executive Decree, the Investig ating Authority may require compliance with the 
requirements not met.  Likewise, even where all th e formal requirements have been met but all the 
information required has not been provided or if it is  inaccurate or unclear, the Investigating Authority 
may require that the information contained in the ap plication be corrected, clarified or supplemented.  
This initial review shall take place within five (5 ) working days of the date of submission of the 
application.   At the end of this period, if a notification h as to be made in accordance with this Article, a 
period of ten (10) working days of such notifica tion shall be given in which to comply with the 
instructions of the Investigating Authority.  Article 150.  Rejection of the form of the application.  After expiry of the period determined in the 
preceding Article, if the applicant has not complied with the requirement on additional information, 
the application shall be rejected and filed by mean s of a reasoned decision.  A reasonable extension to 
the aforementioned period may be granted by th e Investigating Authority, either upon a reasoned 
request from a party or when circumstances so warrant.   Similarly, the Investigating Authority may reject the application if the information submitted is false or irrelevant, or where the applicati on is ill-considered, inappr opriate or unjustified. 
 
CHAPTER II 
 
OPENING AND INITIATION OF THE PROCEDURE 
 Article 151.  Review of the application:  examination of the substance.   After the form of the 
application has been reviewed and it has been dete rmined that the application for an investigation 
received is complete, the Investigating Authority sh all undertake an examination of its substance, for 
which a period of fifteen (15) working days shall be  given to evaluate the merits of the application 
and, by means of a reasoned decision from the comp etent authority, declare the initiation or rejection 
of the administrative investigation.  During this review, the Investigating Authority shall determine 
whether or not there is sufficient evidence to warr ant the initiation of an administrative investigation 
and whether the application has been submitted on beha lf of the domestic industry in such a way that 
it meets the entitlement requirements set out in Article 147 of this Executive Decree. 
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  Article 152.  Rejection and filing of the application.   The competent authority shall reject the 
application submitted and terminate the investigation promptly if it has ascertained that there is not 
sufficient evidence of the conditions necessary for the imposition of measures. 
 
Article 153.  Prerequisites for opening an investigation.   By means of a reasoned resolution, the 
competent authority shall decide to initiate an administrative investigation after it has verified 
compliance with the formal and substantive requi rements and, in particular, that the evidence 
accompanying the application is sufficiently accura te, reliable and credible to comply with the 
necessary requirements for the imposition of measur es at a level that justifies initiation of an 
investigation.  Article 154.  Requirements for ex officio opening of an investigation.   In special circumstances, 
the competent authority may decide to initiate an investigation without having received a written 
application from the domestic industry or on its beha lf requesting initiation of an investigation.  The 
competent authority shall only initiate an ex offici o investigation when it h as sufficient evidence of 
compliance with the necessary requirements for the im position of measures at a level that justifies the 
initiation of an investigation.  Article 155.  Resolution on initiation of an investigation.  If a review of the application shows that 
there is sufficient evidence to jus tify the opening of an investigati on, the competent authority shall 
issue a resolution initiating the corr esponding investigation procedure.  As a minimum, the resolution 
shall contain the following:  
(a) Identification of the person issuing the resolu tion, together with the place and date on 
which it was issued; 
(b) the contact details of the Investigating Authority responsible for carrying out the 
investigation; 
(c) an indication that the application and the detailed description of the documents 
accompanying it are admissible; 
(d) detailed description of the product under inv estigation which has been imported or is 
being imported, including the tariff headi ng, characteristics and other distinguishing 
particulars; 
(e) particulars of the applicant and the percentage of its production of like or directly 
competitive products in comparison with to tal domestic output of the said product; 
(f) description and details of the domestic industry, including the name or company 
name and domicile of each producer a nd other details concerning domestic 
producer(s) of the like or directly competitiv e products identified as forming part of 
the domestic industry; 
(g) the country or countries of origin or source of the product subject to a safeguards 
investigation; 
(h) the name, domicile and other details of local importers, exporters and foreign 
producers of the product under investigation; G/ADP/N/1/PAN/2/Suppl.1 
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  (i) description, identification and details of othe r interested parties to be considered as 
such in the investigation; 
(j) the grounds and substantiation underpinni ng the resolution, including information on 
the existence of the necessary requirements and conditions for the imposition of 
measures; 
(k) the period given to interested parties and, where applicable, to the foreign 
governments indicated in which to communica te the evidence they deem appropriate, 
as well as the place to which they may send their claims; 
(l) the investigation periods shall be determ ined and communicated.  These periods may 
be modified in duly justified situations at the discretion of the Investigating Authority 
after initiation and prior to issuing the preliminary resolution provided that the interested parties are once again given su fficient time to submit the information 
required for proper defence of their interests. 
Article 156.  Notification and public notice of the resolution.  Until the resolution on initiating an 
investigation has been issued, th e authorities shall avoid all publicity regarding the application for 
initiation of an investigation.  After it has been i ssued, the Investigating Authority shall publish an 
excerpt of the resolution in the Gaceta Oficial  or in a national newspaper w ith broad circulation.  This 
excerpt shall include the address of the web page containing the full resolution.  
 The resolution to initiate an investigation sha ll be communicated to the country or countries 
whose products are to be investigat ed, as well as to other interested  parties whose interests are known 
to the Investigating Authority and to the Committe e on Safeguards of the World Trade Organization. 
 Article 157.  Communication.  When notifying a resolution on initiation of an administrative 
investigation, the resolution shall be transmitted to th e interested party or parties within the period set 
out in Article 69 of Decree Law No. 7 of 2006 so that they may respond within a period of thirty (30) calendar days as of receipt of the communication or, in the case of exporters, 
seven (7) calendar days following dispatch of the communication to the addressee or transmittal to the 
competent diplomatic representative of the exporting country or countries.  Due attention shall be 
given to any request for extension of the period of thirty (30) calendar days and, provided there is 
proven justification, the extension sh all be granted whenever feasible. 
  When an investigation is initiated at the request  of a party, a copy of the application submitted 
shall be attached, together with the accompanying  annexes, and in the case of an investigation 
initiated ex officio, the document s used as a basis shall also be  attached.  In any case, the 
documentation to be transmitted shall be restricted  to non-confidential information in accordance with 
the provisions of this Executive Decree.   The documentation mentioned in this Artic le shall be handed over to the government 
authorities of the exporting country through direct not ification to the accredited diplomatic or consular 
representation in the country in accordance with the provisions of this Executive Decree and with 
international agreements to which Panama is party.   If there is no accredited diplomatic or consular 
representation in the country, this communication may be made through the Republic of Panama's 
trade mission to the World Trade Organization to the accredited authority of the exporting country to the said Organization.   G/ADP/N/1/PAN/2/Suppl.1 
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  CHAPTER III 
 
PROCEEDINGS AND RECEIPT OF EVIDENCE 
 
Article 158.  Requests for information.  The Investigating Authority may, in exercise of the powers 
conferred by Article 71 of Decree Law No. 7 of 2006, require interested parties, government bodies 
and third parties not party to the proceedings, to provide any evidence, information or data it deems 
relevant and may use forms for this purpose. 
 
(a) From interested parties:  dispatch of ques tionnaires.  In the case of foreign producers, 
exporters, importers and dom estic producers, it shall send a questionnaire requesting 
information.  The interested parties shall be given a period of thirty (30) calendar 
days in which to respond to the questionnair es.  Due attention shall be given to any 
request for extension of this period and pr ovided that there is proven justification a 
further period of up to thirty calendar days  may be allowed.  Provided that it is 
feasible, the extension requested shall be granted. 
(b) From government bodies.  The Investigating Authority may at any time request 
bodies belonging to the public administration to provide any type of information or 
technical opinions, which they must furnish within a period not exceeding 
thirty (30) calendar days. 
(c) From third parties not party to the proceedings.  The Investigating Authority may at 
any time require Panamanian producers, distributors or traders of the product or good in question, as well as customs officials, agents, attorneys or consignees of the 
importers, or any other pers on it deems appropriate, to fu rnish information and data 
available to them and relevant for the purposes of the investigation. 
Paragraph:   With regard to paragraph (a) of this Ar ticle, as a general rule , the periods given to 
exporters shall be calculated from the date of recei pt of the questionnaire and for this purpose it shall 
be considered as having been received seven calendar days after the date on which it was sent to the 
addressee or handed to the competent diplomatic re presentative of the exporting Member, or in the 
case of a separate customs territory Member of the WT O, to an official representative of the exporting 
territory. 
 Article 159.  Submission of evidence.  The parties may furnish their evidence during the period 
allowed in the communication of the resolution on initia tion to the interested parties.  In those cases in 
which an extension of this period has been requested  and granted, the period for furnishing evidence 
shall also be extended. 
 Article 160.  Admissibility and rejection of evidence.  In order to decide what evidence is 
admissible and what is not, the Investigating Author ity shall examine the relevance or otherwise of 
each piece of evidence in respect of the facts to be proved;  for th is purpose, it shall take into 
consideration the legal rules governing evidence. 
 
 The process of admissibility and rejection of evidence shall take into  account the evidence 
offered by the parties and the provisions of this Ex ecutive Decree after expiry of the last period for 
communication, including any extensions grante d.  Nevertheless, nothing shall prevent the 
Investigating Authority from allowing and ordering  parties to furnish the evidence offered before 
expiry of this time-limit. 
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  Article 161.  Period for examining evidence.  After it has been decided wh at evidence is admissible, 
it shall be furnished within a period not exceeding fift een (15) calendar days of the date of expiry of 
the period for communication.  This period may be extended by the Investigating Authority taking 
into account the special features of each case. 
  To further the proceedings, the Investigating Authority may likewise at any time request any 
type of information or technical opinions from any of the bodies belonging to the public 
administration, which shall be required to furnish them  within thirty (30) calendar days at the latest. 
 
 Without prejudice to the protection of confid ential information, the evidence presented shall 
be placed in the file at the disposal of other inter ested parties taking part in the investigation that so 
request.  
Article 162.  Evidence to further the proceedings.  To further the proceedings, the Investigating 
Authority may require the communication of any of the types of evidence prov ided in Article 51 of 
this Executive Decree or expansion of the eviden ce already received.  Evidence for the purpose of 
furthering the proceedings may include entirely new ev idence in addition to alr eady existing evidence.  
The resolution requiring the furnishing of such eviden ce shall also set the time-limit within which the 
requirement must be met and if it is not possible to determine this, it shall be complied with promptly.  
This type of evidence may not be examined if  it would exceed the maximum time available for 
completion of the investigation in the te rms permitted by this Executive Decree. 
 Article 163.  Sessions for the purpose of furnishing evidence.   The evidence offered by the 
interested parties and which has been duly declar ed admissible, as well as th e evidence ordered by the 
administration, shall be furnished in the course of sessions duly convened for this purpose.  The 
parties and their attorneys shall collabor ate in providing the evidence decreed. 
 Article 164.  Presence and part icipation of interested parties.   The Investigating Authority shall 
communicate to interested parties sufficiently in advance the place, date and time for submitting the 
evidence, where appropriate notifying the interested pa rty that it may appoint an attorney or experts to 
assist it.  When submitting the evidence, due account sh all be taken of whether or not the information 
to be provided at the session is confidential in order to decide whether or not to restrict access to the 
session by other interested parties.  In order to ma ke this decision, the party requesting that the 
information be treated as confidential shall justif y its request in accordance with Article 53 of this 
Executive Decree and the Investig ating Authority may prepare a non-confidential summary of the 
evidence submitted for inclusion in the file open to the public. 
 Article 165.  Oral evidence.   Oral evidence shall be given before the Investigating Authority.  The 
Investigating Authority may limit the furnishing of  oral evidence by each party to the extent it 
considers useful and necessary in the light of the fact s to be investigated.  If, for justified reasons, the 
witness does not appear when the evidence is to be submitted, he may be conve ned one other time for 
this purpose, otherwise the evidence shall be deemed to have been withdrawn. 
 When it is not possible to complete the ex amination of oral evidence during the hearing 
convened for this purpose, it may be continued at a subsequent date set within a reasonable time by 
the official responsible for the case.  
Article 166.  Technical report on evidence.   The Investigating Authority shall prepare a preliminary 
technical report and a final technical report ev aluating the evidence submitted and examined during 
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  calculations and any other calculations necessary in order to analyse the information collected on the 
facts investigated.  
 These technical reports shall be submitted in or der to be able to make the preliminary and 
final determinations.  The prelimin ary report shall be prepared based on the information to be found in 
the application and may take into account the replies to the questionnaires sent out by the 
Investigating Authority.  The final report shall be prepared after all the evid ence has been examined.  
Each of these reports shall be prepared in two vers ions, one for the public and one confidential.  The 
public version shall be included in th e public file and the data shall be expressed in terms that respect 
the confidentiality of the information that has been  declared to be confidential;  the confidential 
version may not be disclosed and shall remain in the confidential file.  
CHAPTER IV 
 
PRELIMINARY DETERMINATION 
 Article 167.  Grounds for determination.   Following the public notice of initiation of an 
investigation, a preliminary determination may be is sued on the basis of the information and evidence 
contained in the application and the information t hus far available to the Investigating Authority. 
 
Article 168.  Contents of the preliminary determination.   In the preliminary determination 
provided in Article 79 of Decree Law No. 7 of 2006, the Investigating Authority shall mention all the findings and conclusions reached on all issues of fact  and of law considered relevant and for this 
purpose shall evaluate the arguments put forward dur ing the proceedings and the evidence furnished.  
When making the preliminary determination, it shall be decided whether or not to recommend 
provisional measures in accordance with th e provisions of this Executive Decree. 
 Article 169.  Evaluation of the level of certainty required.   The level of certainty required in order 
to prove the facts investigated shall be in proportio n to the progress made in the investigation.  The 
examination of evidence shall not be a requirement in  order to issue this preliminary determination. 
 
CHAPTER V 
 
PROVISIONAL MEASURES 
 
Article 170.  Conditions and requirements.   During the investigation period and after the 
preliminary determination has been issued, the Inv estigating Authority may, by means of a reasoned 
decision, recommend to the Cabinet Council that it adopt such measures if: 
(a) An investigation has been initiated in accordance with the provisions of this 
Executive Decree and other applicable regulations and public notice has been given to that effect; 
(b) a preliminary determination has been made of  the existence of clear evidence that the 
increase in imports has caused or threatens to cause serious injury; 
(c) the competent authority judges that there are critical circumstances where any delay 
would cause damage which it would be difficult to repair. 
 An excerpt from the provisional safeguards measure adopted shall be published in the 
Gaceta Oficial  or in a recognized newspaper with broad circulation. G/ADP/N/1/PAN/2/Suppl.1 
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Article 171.  Duration of the measures.   As provided in Article 80 of  Decree Law No. 7 of 2006, the 
provisional measures shall under no circum stances be applied for more than 
two hundred (200) calendar days. 
 Article 172.  Type of measures.  Restrictions.   Provisional measures shall be adopted in the form of 
tariff increases, which may be guaranteed by cash de posits or bonds in an amount equivalent to that 
provisionally established in the measure. 
 
 Where, having completed the legal procedure for determining whether a definitive safeguard 
measure is to be applied, the Investigating Auth ority determines that the increase in imports has not 
caused or threatened to cause serious injury to the domestic industry, the temporary tariff increases 
imposed by means of provisional safeguard m easures shall be refunded to the importers.  
 
Article 173.  Evaluation for the purposes of application.  In order to conduct the evaluation for the 
purposes of applying provisional measures, the Inv estigating Authority may take into account the 
following elements, inter alia :  the level and rate of the increase in imports and the degree of price 
undercutting, as well as any other criteri a it deems timely and appropriate. 
 
CHAPTER VII 
 
FINAL HEARING 
 Article 174.  Object and purpose of the hearing.   The object and purpose of the hearing is to inform 
and hear parties to the proceedings regarding th e essential facts under consideration and used as a 
basis for the decision on whether or not to reco mmend the application of definitive measures. 
 Article 175.  Convening of the final hearing.   After the evidence has been submitted and before 
issuing a resolution terminating the administrative i nvestigation, in exercise of the powers given by 
Article 73 of Decree Law No. 7 of 2006, the Inv estigating Authority shall summon all interested 
parties to a public hearing.  This invitation shall be  sent to interested parties that have notified an 
address for receiving notifications in accordance with  Article 60 of this Executive Decree no less than 
seven (7) calendar days before the date of the said  final hearing so that they may effectively defend 
their interests.  
 In addition, the Investigating Authority sha ll order publication of a public invitation once only 
in a national newspaper.  This inv itation shall inform those interested in attending or participating in 
the hearing that there is limited space and they sh ould request the Investig ating Authority in writing 
for prior authorization in order to be able to atte nd.  This request should set out the reasons why the 
person wishes to participate in this procedure.  The space shall be allotted at the discretion of the 
Investigating Authority, on the basis of representa tiveness criteria and in accordance with the order in 
the application.  Those who are not party to the proc edure but wish to participate in the hearing shall 
only be allowed to do so in the form of an oral statement on whether or not the application of the 
safeguard measure is in the public interest.   Pursuant to the provisions of Article 41 of Decree Law No. 7 of 2006, representatives of the 
Ministry of Agricultural Development and the Ministry of the Economy and Finance may also take 
part in the hearing.  Article 176.  Communication of essential facts.   In order to implement Article 41 of Decree Law 
No. 7 of 2006, the Investigating Authority shall pr epare a report on the essential facts which serve as a  G/ADP/N/1/PAN/2/Suppl.1 
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  basis for the decision on whether or not to recomme nd definitive measures and this shall be sent to all 
interested parties at the time of convening the hearing referred to in the preceding Article. 
 
Article 177.  Procedure at the hearing.   At the hearing, the official appointed for this purpose shall 
initiate proceedings by verifying the identity of the parties, which may attend themselves or be 
represented by a competent attorney.  The absence of one or more interested parties or other persons 
invited to attend shall not prevent the holding of the hearing.  When allotting the time allowed for 
participation by those participating in the hearing, th e official shall take into consideration the need to 
guarantee proper defence of the interests of those co ncerned by the investigation.  The hearing shall 
be recorded, transcribed and incorporated into the file. 
 Article 178.  Presentation of final arguments.   After the hearing has been concluded and the 
recording referred to in the preceding Article has been  incorporated into the file, the interested parties 
shall be given the period of three (3) working days  provided in Article 73 of Decree Law No. 7 of 
2006 in which to submit their final arguments in defence of their interests and to express their opinions.  These final arguments shall be submitt ed in writing and also by electronic means. 
 
CHAPTER VII 
 
DEFINITIVE DETERMINATION 
 Article 179.  Definitive determination.   After having received the claims, the competent authority 
shall have ten (10) working days within whic h to issue a reasoned resolution terminating the 
administrative investigation.  This resolution sha ll include the definitive determination and, where 
appropriate, shall make a recommendation to the Cabinet Council on the application of definitive 
measures.  This time-limit may be extended by the National Director for the Implementation of 
Treaties and Safeguarding Trade at the request of th e Director for Safeguarding Trade in the light of 
the special conditions applicable to each investig ation so that its decision is properly presented. 
 Article 180.  Application of measures  or rejection of the application.   When issuing the final 
resolution, the competent authority shall evaluate  whether the necessary conditions exist for imposing 
definitive measures in accordance w ith the requirements of this Execu tive Decree and other applicable 
regulations.  If such conditions do not exist, the co mpetent authority shall reject the application and 
terminate the investigation.  
Article 181.  Level of imposition of measures.   When issuing the recommendation on imposition of 
definitive measures, the Investigating Authority sh all indicate the level at which it considers the 
definitive measures should be imposed and their duration.   Pursuant to the provisions of Article 58 of Decree Law No. 7 of 2006, the duration of the initial application of safeguard measures may not exceed four (4) years.  This duration may be 
extended once only in accordance with Article 188 of this Executive Decree. 
  Definitive measures may consist of tariff increase s or quantitative restrictions.  In order to 
conduct the analysis needed to determine the tariff in crease, the Investigating Authority may take into 
account the level of the increase in imports and th e degree of price undercutting, as well as any other 
criteria it deems timely and appropriate. 
 Article 182.  Evaluation of the public interest.   When recommending whether or not to impose 
measures in its final determination, on the basis of  Article 3.1 of the Agreement on Safeguards, the 
Investigating Authority may mention those argument s related to the public interest and which have G/ADP/N/1/PAN/2/Suppl.1 
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  been put forward by the interested parties or by th e public in general within the time-limit allowed in 
the public notice of a preliminary determination. 
Article 183.  Content of the final determination.   The competent authority's final resolution shall 
include a final determination which sh all contain at least the following: 
 
(a) Information identifying the applicant and a summary of the arguments included in the 
application; 
(b) a full description of the product that is the subject of the investigation; 
(c) information on the date of initiation of the investigation and, where applicable, the 
extension of the period of investigation; 
(d) a brief summary of the main facts taken as proven and used as a basis for the 
preliminary determination; 
(e) whether provisional measures have been im posed and details on their application; 
(f) a summary of the findings of the examinati on of evidence, as well as identification of 
the evidence that has been rej ected and the reasons therefor; 
(g) a brief summary of the parties' final arguments regarding the facts on which the 
investigation was based; 
(h) the main findings of the Investigating Authority during the course of the investigation 
on the existence of conditions for the imposition of definitive safeguard measures, as 
governed by this Executive Decree and the applicable regulations; 
(i) indication and evaluation of the arguments upon whether or not it is in the public 
interest to apply measures; 
(j) the recommendation to the Cabine t Council, where applicable. 
Article 184.  Final recommendation.   The recommendation referred to in paragraph (j) of the 
preceding Article shall indicate whether definitive measures should be imposed and the form they 
should take, as well as the details needed for their proper application.  If provisional measures have 
been applied, there shall be a recommendation on whet her or not to confirm their application and on 
the retroactivity of th e definitive measures. 
  After the Cabinet Council has received the reso lution from the competent authority, it shall 
decide whether to accept or reject the recommendati on and shall issue the relevant decree for this 
purpose.  
CHAPTER VIII 
 
EXAMINATION OF LIBERALIZATION AND EXTENSION 
 Article 185.  Examination of liberalization.   Pursuant to Article 59 of Decree Law No. 7 of 2006, 
when the duration of a safeguard measure is over one  (1) year, it shall be progressively liberalized at 
regular periods or intervals during the period of a pplication, in accordance with the provisions of  G/ADP/N/1/PAN/2/Suppl.1 
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  Article 7.4 of the Agreement on Safeguards.  If a sa feguard measure has been extended, it may not be 
more restrictive than it was at the end of the in itial period and shall contin ue to be progressively 
liberalized. 
 
 In order not to impede the application of an  extension in accordance with the provisions in 
this Chapter, Decree Law No. 7 of 2006 and the Agreement on Safeguards, the process of liberalizing 
the measure shall be carried out on the basis of a linear projection of the liberalization process as though the measure had been applied over the maximum possible period. 
 
 If the duration of the safeguard measure exceeds three (3) years, the Investigating Authority 
shall review the situation not later than the mid-term  of the period of appli cation and, if appropriate, 
shall recommend that the Cabinet Council withdraw the measure or increase the pace of liberalization. 
 
 A safeguard measure may likewise be liberalized  or suspended if the domestic industry fails 
to comply with the plan to overcome the circumst ances alleged or with the adjustment plan where 
compliance with such a plan is est ablished in the final resolution, except where the non-compliance is 
not attributable to the domestic industry.  Article 186.  Review of extension of measures.   Pursuant to Article 58 of Decree Law No. 7 of 2006, 
safeguard measures may be extended at the request of  a party or ex officio.  Where review of an 
extension is initiated at the request of a party, the a pplication shall be adequate ly substantiated to meet 
the requirements of Article 7.2 of the Agreem ent on Safeguards and be submitted no less than 
one hundred and twenty (120) calendar days prior to expiry of the measure.  The applicant shall prove 
that it has the status of interested party in accord ance with Article 8(g) of this Executive Decree and 
that it has the necessary entitlement to act on be half of the domestic industry under the same 
conditions as those required in order to be able to  request the initiation of a regular administrative 
investigation.  The safeguard measure may continue  to be applied pending the outcome of the review 
even after expiry of the time-limit,  but in such cases if the extension is not granted the duty paid after 
the date of expiry shall be promptly refunded.  
 The fact of not being an interested party in th e original investigation that led to the imposition 
of measures shall in no way prevent a new producer fro m being given such status and, if it meets the 
representativeness requirements, being entitled to act as an applicant in relation to an application for 
extension.  
 Applications for extension shall be dealt w ith in an accelerated procedure for which the 
Investigating Authority shall take as a basis the pr ovisions of this Chapter and, where necessary and 
applicable, shall follow the procedural rules prescr ibed for regular general safeguard procedures. 
 Article 187.  Content of the application.   An application for review shall contain at least the 
following: 
 
(a) Particulars of the applicant, including name and personal identity number or company 
name and registration number, domicile, postal address if it is not the same as that of 
the domicile, fax number, e- mail address or website. 
(b) A clear indication of the measure whose extension is requested, the period during 
which it has been in force and the circ umstances which the applicant considers 
justifies extension of the measure. 
(c) Sufficient evidence to support the application for extension of measures. G/ADP/N/1/PAN/2/Suppl.1 
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  (d) Any information or data which the appli cant wishes to submit together with the 
application and which is to be provided by government bodies according to their 
competence may be deemed to have been file d with the Investigating Authority if the 
applicant provides reliable evidence of th e formalities completed to obtain them. 
(e) Where necessary, all documentation shall be  submitted in two versions:  confidential 
and public.  These shall be identical except that the public version shall contain a 
non-confidential summary of the information that has been omitt ed.  This summary 
should express clearly the data deemed c onfidential in such a way as to permit an 
understanding of the information omitted, fo r example, charts without numbers may 
be used, as well as explanations in terms of percentages or other forms.  The public 
information shall be made available to the other parties concerned by the investigation.  Information shall be classifi ed as confidential, if so requested, in 
accordance with the relevant provis ions in this Executive Decree. 
Article 188.  Resolution and period of extension.   Where it is determined that elimination of the 
measure would lead to continuation or recurrence of  the injury and the conditions that caused it, a 
recommendation may be made to the Cabinet Council that it grant the extension of the safeguard 
measure.  The measure may be extended once only for a maximum of six (6) years, provided that it is 
determined in accordance with Article 7.2 of the Agreement on Safeguards that the measure continues 
to be necessary to prevent or remedy  injury or the threat of serious injury and that th ere is evidence 
that the industry is adjusting. 
  If, as a result of the investigation, it is determ ined that the necessary conditions for modifying 
the measures or extending them do not exist, th e application shall be rejected and filed. 
 
Article 189.  Appeals.   An appeal may be made against th e resolution indicated in the preceding 
Article.  
TITLE IX 
 
APPLICATION OF SPECIAL SAFEGUARDS 
 
CHAPTER I 
 
BILATERAL SAFEGUARDS 
 
Article 190.  Concept.   This definition includes measures cal led transitional safeguards, bilateral 
safeguards and any other measures without prejudice to the name given to the relevant rule of 
international law which may be applied by the Repu blic of Panama in accordance with the provisions 
of international economic integr ation treaties and differ from the emergency measures authorized 
exclusively by Article XIX of the GA TT 1994 and the Agreement on Safeguards. 
 
Article 191.  Conditions for application.   The conditions and requirements for applying such 
safeguards or mechanisms shall be defined in the pertinent international trade agreement, convention 
or treaty.   In the case of bilateral safeguards, the evalua tion of the conditions of injury, the increase in 
imports and the causal link shall be made in a ccordance with the provisions of the Agreement 
concerned and those in this Ex ecutive Decree, where necessary.  G/ADP/N/1/PAN/2/Suppl.1 
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   Where the administrative procedure concerns the use of special triggering mechanisms, the 
only requirement shall be confirmation of the ob jective facts and conditions on the international 
market normally referring to a trigger price or vol ume of imports.  These conditions of application do 
not include an analysis of the injury to the domestic industry and do not therefore require an 
examination of those belonging to it.   The Ministry of Trade and Industry, in th e normal exercise of its functions, shall be 
exclusively and directly responsible for applying such measures and there is therefore no need to 
submit a recommendation for approval by the Cabi net Council.  In those cases where international 
rules authorizing use of the measure have so provi ded, the countries concerned shall be invited to 
consultations on the conditions of  application of the measures. 
 Article 192.  Procedure applicable .  Application of the measures regulated in this Chapter shall be in 
accordance with the provisions of the specific intern ational treaties in each case and, where no such 
provision exists, shall comply with the proce dural rules set out in this Executive Decree. 
 Article 193.  Regulatory integration.   In the absence of any such provisions in the corresponding 
treaty, the provisions of Article XIX of the GATT 1994, the Agreement on Safeguards, and the 
relevant national legislation, in partic ular this Executive Decree, shall apply. 
 
CHAPTER II 
 
OTHER SPECIAL TRIGGERING MECHANISMS 
 
Article 194.  Concept.   This category shall include those m easures derived from international rules 
which provide for an expeditious and different pro cedure from that provided for general and bilateral 
safeguards.  These include the speci al agricultural safeguard regulated by Article 5 of the World 
Trade Organization's Agreement on Agriculture, as well as any other similar measure, irrespective of 
the name given to it.  
Article 195.  Nature of the automatic triggering procedure.   The application procedure for this 
mechanism is exceptional and automatic so that in pr inciple it does not provide for the participation of 
interested parties, unless otherwise decided by the In vestigating Authority.  Nothing shall prevent the 
use of this mechanism as the result of an applicati on by domestic producers.  This procedure is based 
on the rights given to the Republic of Panama under international treaties acc ording to which special 
short-term mechanisms may be used to protect  the domestic economy under the specific conditions 
set out in the said international rules.  Article 196.  Form of procedure.   This procedure shall be conducted in a summary and accelerated 
form.  Its objective is to confirm the concrete a nd objective facts authorizing the application of a 
unilateral measure for a very short period.  Unless the Investigating Authority decides otherwise, the 
procedure shall be conducted without the participation of anyone considered to be an interested party. 
 Article 197.  Procedure.   This procedure may be initiated ex offi cio or at the request of a party.  In 
the latter case, the application shall be submitte d by any person who proves the existence of a 
subjective right that has been impaired.  The applica tion shall indicate clearly the product that is to be 
the subject of automatic safeguard measures and th e reasons considered to justify the imposition of 
the measure.  Where the application is submitted by a party, it shall be drawn up by a competent 
attorney and shall set out the arguments and r easons of fact and of law on which it is based. 
 G/ADP/N/1/PAN/2/Suppl.1 
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   After it has received the application, the Inves tigating Authority shall examine its content in 
order to determine whether all the information re quired under the terms of this Executive Decree has 
been included and, where it deems re levant, shall order the initiation of  the investigation.  Similarly, 
the Investigating Authority may reject the appli cation if the information submitted is false or 
irrelevant, or where the application is ill -considered, inappropria te or unjustified. 
 Article 198.  Allocation of competence.   The Investigating Authority shall conduct the procedure on 
behalf of the National Directorate for the Admini stration of Treaties and Safeguarding Trade.  The 
latter shall be responsible for ordering the in itiation of the investigation and deciding on the 
imposition of measures in such proceedings.  Article 199.  Participation in the procedure.   Status as an interested party in the procedure may only 
be granted by the National Director for the Admi nistration of Treaties and Safeguarding Trade, who 
has full discretion to take a decision in the light of the contribution which the party may make to the 
investigation.  For this purpose, status as an inte rested party shall be specifically requested, indicating 
the reasons justifying the request.  Article 200.  Convening of interested parties and their participation.   A party shall be invited to 
take part in the procedure only in  those cases in which, exceptionally, th e status of interested party has 
been granted, and shall be given the corresponding opportunity to submit evidence, take part in its 
examination and present final claims.  Article 201.  Evidence.   The Investigating Authority may require any public or private person, in fact 
or in law, to provide evidence, information and data it deems relevant, for which purpose it may use 
questionnaires or forms when it considers appropriate .  The provisions of Title VI, Chapter III, on the 
examination and submission of evidence shall appl y to automatic application procedures.  Those 
required to do so shall submit the evidence within  a maximum period of five (5) working days, 
although this period may be less if in the opinion of the Directorate for Safeguarding Trade special 
circumstances exist.  
Article 202.  Resolution.   The competent authority shall issue a resolution indicating whether or not 
triggering measures are to be imposed depending on whether the factual assumptions required for the 
imposition of such measures are met.  Appeals against this resolution may only be made in 
accordance with the provisions of this Executive De cree.  Measures shall be imposed in accordance 
with the international rules aut horizing use of this mechanism. 
 
Article 203.  Public notice.  In such investigations, public notice sh all be given of the initiation of the 
investigation and its final resolution;  for this purpose, the provisions of this Executive Decree on 
public notice of initiation and definitive de termination shall apply as appropriate. 
 Article 204.  Consultations and negotiation on compensation.  Where international rules also 
require the holding of consultations or any type of  negotiation and there are no relevant procedural 
provisions in this Executive Decree, the provi sions of the said rules shall be followed. 
  G/ADP/N/1/PAN/2/Suppl.1 
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  TITLE X 
 
FINAL PROVISIONS 
 
CHAPTER I 
 
SMALL AND MEDIUM-SIZED ENTERPRISES 
 
Article 205.  Technical assistance and cooperation.  The Ministry of Trade and Industry, to the 
extent of its possibilities and through the Directorat e for Safeguarding Trade, shall provide small and 
medium-sized enterprises with technical assistance a nd cooperation in order to explain to them the use 
of the instruments regulated by this Executive Decree.  The Minist ry may also require support from 
other public, private, national or foreign institu tions whose assistance could enhance understanding of 
international procedures to safeguard trade. 
  As part of the technical assistance and c ooperation for all the country's production sectors, 
focusing in particular on small and medium-sized en terprises, the Ministry of Trade and Industry may 
prepare manuals on procedures, forms and guidelin es showing these enterprises how to proceed with 
formulating and safeguarding their interests within th e framework of an investigation governed by this 
Executive Decree. 
 
CHAPTER II 
 
IMPLEMENTATION OF MEASURES 
 
Article 206.  Application of measures.  A definitive or provisional measures imposed in accordance 
with the provisions of this Executive Decree shall apply as of the working day following its 
publication in the Gaceta Oficial  or in a national newspape r with broad circulation. 
 Article 207.  Circumvention.  The following are deemed to constitute circumvention of 
countervailing or anti-dumping duties or safeguard measures: 
 
(a) Introduction into the national territory of inputs, parts or components for the purpose 
of production or assembly of the product subject to countervailing or anti-dumping 
duties or safeguard measures. 
(b) Introduction into the national territory of goods subject to countervailing or 
anti-dumping duties or safeguard measures with inputs, parts or components integrated or assembled in a third country. 
(c) Introduction into the national territory of goods from the same country of origin as 
the good subject to countervailing or anti-dumping duties or safeguard measures that have slight differences in compar ison with the product in question. 
(d) Introduction into the national territory of goods subject to countervailing or 
anti-dumping duties imported at a price lower than the applicable price. 
(e) Any other action resulting in failure to pay the countervailing or anti-dumping duties 
or safeguard measures, for example, making an inaccurate declaration of the value or 
volume of the product, its origin;  or its nature or classification. G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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   Goods imported under such cond itions shall be subject to pa yment of the countervailing or 
anti-dumping duties or to the corresponding safeguard measure.  Circumvention of provisional or definitive countervailing or anti-dumping duties or saf eguard measures shall be  determined through 
proceedings initiated ex officio or at the request of an interested party, as provided in Annex III to this 
Executive Decree.  Article 208.  Judicial review of measures.   Decisions by the Cabinet Council may be subject to 
judicial review in accordance with the relevant provisions.  Likewise, in cases where administrative 
channels have been exhausted, th e contesting party may turn to judi cial channels according to the 
rules governing administrative litigation.  
CHAPTER III 
 
ANNEXES 
 Article 209.  Annexes.   Annexes I, II and III shall form an inte gral part of the text of this Executive 
Decree and indicate the following:  
ANNEX I 
 
PROCEDURE TO BE FOLLOWED IN  IN SITU INVESTIGATIONS 
CONDUCTED ABROAD 
 1. When initiating an investigation, the authoriti es of the exporting country and the enterprises 
known to be interested shall be informed of the intention to carry out in situ investigations. 
2. Only government officials or experts appointed by the Investigating Authority may participate 
in the investigating team.  The enterprises and auth orities of the exporting country shall be informed 
of the composition of the team. 
3. It shall be normal practice to obtain the expr ess consent of interested enterprises in the 
exporting country before definitivel y scheduling the visit.  The ente rprises concerned shall be notified 
of the visit sufficiently in advance. 
4. After obtaining the consent of the interested enterprises, the Investigating Authority shall 
communicate to the authorities of th e exporting country the names and address of the enterprises to be 
visited and the dates agreed.  Visits  may only take place if the Investigating Authority notifies them to 
the representatives of the country in questi on and the latter do not oppose the visit. 
5. Inasmuch as the ultimate objective of the in situ  investigation is to verify the information 
received and obtain further details, this investiga tion shall only take place after a response to the 
questionnaire has been received, unless the ente rprise concerned otherwise agrees and the 
Investigating Authority informs the government of the exporting country of the scheduled visit and 
the latter does not oppose it;  moreover, it shall be norma l practice to inform the interested enterprises 
prior to the visit of the general nature of the info rmation to be verified and what other information 
needs to be supplied, although this shall not preven t further details being requested during the visit in 
the light of the information obtained. 
6. Wherever possible, replies to the requests fo r information or to the questions by the 
authorities or the enterprises in exporting countries and essential for the proper outcome of the in situ 
investigation shall be given prior to the visit.  The investigating team may contact third parties  G/ADP/N/1/PAN/2/Suppl.1 
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  concerned in order to corroborate the information that  is the subject of the visit and for this purpose 
shall inform the enterprise of the persons to be contacted. 
7. During the in situ verification procedures, the investigating team shall draw up a document 
that includes the signatures of those participating a nd a summary of the relevant facts encountered in 
the course of the visit.  Subsequently, the inv estigating team shall prepare a verification report 
incorporating all the findings, the questions posed and the replies given, as well as the verifications 
conducted.  This report shall be prepared in two ve rsions, a confidential version of which a copy shall 
be given to the enterprise visited with the origin al being included in the confidential file, and a 
non-confidential version to be made availa ble to all other interested parties. 
ANNEX II 
 
BEST AVAILABLE INFORMATION 
 
1. As soon as possible after initiating the investigati on, the Investigating Authority shall specify 
in detail the information sought from each party and the form in which it should be set out in its reply.  
It should also ensure that the party is aware that, if it does not provide this information within a reasonable time, the Investigating Authority shall be at liberty to base its decisions on the facts 
available, including those appearing in the appli cation for initiation of an investigation submitted by 
the domestic industry. 
2. The Investigating Authority may also request th at a party provide its reply using a specific 
medium (for example, in computer format) or in a specified computer language.  When making such a 
request, the Investigating Authority shall take into account whether the party has a reasonable 
possibility of responding in the preferred medium or computer language and shall not request the party to provide its response using a computer system that is different from the one it habitually uses.  
The Investigating Authority shall not request co mputerized replies if the party does not keep 
computerized accounts and if submitting the reply in the form requested places an unreasonable 
additional burden on the party, for example,  an excessive increase in cost and effort. 
3. When making determinations, all the verifiable information submitted properly in such a way 
as to be used in the investigation without ex cessive difficulties, provided in time and, where 
appropriate, in a medium or computer language re quested by the authorities shall be taken into 
account.  Where a party does not reply using the pr eferred medium or computer language but the 
Investigating Authority considers that the circumstan ces referred to in paragraph 2 above exist, it shall 
not be considered that the fact that it has not res ponded in the preferred medi um or computer language 
significantly hinders the investigation. 
4. Where the Investigating Authority is unable to process the informati on because it has been 
provided in a specific medium (for example, a comput er format), the information shall be provided in 
writing or in any other acceptable form. 
5. Even though the information provided is not the best  in all respects, this fact shall not serve as 
justification for the Investigating Authority to disr egard it provided that the interested party has done 
everything within its power. 
6. Where evidence or information is not accepted,  the party providing it shall be informed 
immediately of the reasons which have led to its non -acceptance and shall be given an opportunity to 
submit new explanations within a reasonable time, taking due account of the time-limits set for the 
investigation.  If the Investigating Authority consider s that the explanations are unsatisfactory, in any G/ADP/N/1/PAN/2/Suppl.1 
G/SCM/N/1/PAN/2/Suppl.1 G/SG/N/1/PAN/2/Suppl.1 
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  determinations published it shall explain the reas ons for which it has rejected the evidence or 
information. 
7. Where the Investigating Authority has to base its conclusions, including those on the normal 
value, on information obtained from a secondary sour ce, including the information appearing in the 
application for initiation of an investigation, it sh all proceed with special caution.  In such cases, 
wherever possible, it shall compare such informat ion with that available from other independent 
sources, for example, published price lists, official import statistics and customs statistics, as well as 
the information obtained from other interested parties in the course of the investigation.  Nevertheless, 
obviously if a party does not cooperate and thus fails to communicate relevant information to the 
Investigating Authority, this could lead to a l ess favourable result for this party than if it had 
cooperated. 
ANNEX III 
 
PROCEDURE FOR INVESTIGATION INTO CIRCUMVENTION 
 1. Circumvention proceedings may be initiated ex officio or at the request of a party.  The 
application for initiation shall be submitted to th e competent authority by a competent attorney, 
representing a party that has a right or le gitimate interest likely to be affected. 
2. Any application for review relating to circumve ntion shall include information on the specific 
type of circumvention which is alleged.  In add ition, in fulfilment of the powers granted by Decree 
Law No. 7 of 2006, the Investigating Authority may request from any importer, exporter, domestic or 
foreign producer, government bodies and third parti es not party to the proceedings the evidence, 
information and data it considers relevant for th e purpose of the circumvention investigation. 
3. If it is considered that there are grounds for initiating a circumvention investigation, the 
competent authority shall issue a reasoned reso lution on initiation in which it shall request the 
information it considers necessary, determine wh ether the proceedings should only involve one 
investigation phase or preliminary and final ph ases, taking into account the complexity of the 
investigation and the evidence to be examined.  Th e resolution shall give the parties investigated a 
reasonable time to provide evidence and undertake a proper defence of their interests. 
4. An appeal against this resolution may be l odged in accordance with Articles 171 et seq. of 
Law No. 38 of 2000. 
5. If the parties that have been requested to s upply information are unable to respond within the 
designated time, they may request an extension for an equal period of time.  After the time allowed 
for presentation and submission of the evidence requi red by the Investigating Authority has elapsed, 
the necessary procedures shall be followed without de lay.  After the period allowed for receiving the 
information requested or examining the evidence has ended, this phase shall be deemed to have been 
concluded and a preliminary or definitive dete rmination may be adopted on the basis of the 
information and evidence available. 
6. In circumvention investigations, earlier informa tion to be found in the administrative file on 
imposition of the measure may be used provided that  more recent information has not been presented 
ex officio or by the parties. 
7. In the case of a negative preliminary determina tion, drawn up in accordance with paragraph 3, 
and provided that the relevant interested party has, as a minimum, submitted a substantive although  G/ADP/N/1/PAN/2/Suppl.1 
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  incomplete response within the time allowed, this pa rty shall be given an opportunity to remedy the 
omission within a period of seven (7) days and in its definitive conclusion the Investigating Authority 
shall take into account the additi onal information thus provided. 
8. The Investigating Authority may conduct the verifications it deems necessary in order to 
confirm the accuracy and relevance of the data provided by any interested party. 
9. If the Investigating Authority determines that  circumvention has occurred, its definitive 
resolution may impose the following: 
(a) A tariff increase to offset the absorp tion of duties through circumvention; 
(b) extension of the scope of measures to sp are parts, components or like replacement 
products, new models or other such produc ts giving rise to the circumvention. 
10. Circumvention proceedings require the submission of a recommendation to the Cabinet 
Council for its approval with a view to imposing ne w measures or modifying those already existing. 
CHAPTER IV 
 
REPEAL AND ENTRY INTO FORCE 
 Article 210.  Repeal.   This Executive Decree repeals all contrary provisions. 
 Article 211.  Entry into force.   This Executive Decree shall enter into force from the date of its 
publication in the Gaceta Oficial . 
  FOR PUBLICATION AND IMPLEMENTATION  
Done at Panama City on the eighth day of the m onth of January of two thousand and nine (2009). 
  
MARTÍN TORRIJOS ESPINO 
President of the Republic 
 
 
GISELA ÁLVAREZ OF PORRAS Ministry of Trade and Industry  
__________