WORLD TRADE  
ORGANIZATION  G/SG/N/8/PAN/1/Suppl.1 
G/SG/N/10/PAN/1/Suppl.1 19 October 2007 
 
 
(07-4530) 
Committee on Safeguards Original:   Spanish 
  
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON MAKING A FINDING OF SERIOUS INJURY OR 
THREAT THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION UNDER ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
PANAMA 
Supplement
 
 
(Printed BOPP Film and Printed PVC Film, in Rolls ) 
   The following notification, dated 11 October 200 7, is being circulated at the request of the 
Permanent Mission of Panama.  
_______________ 
 
  Pursuant to Article 12.1(c) of the WTO Ag reement on Safeguards, Panama notifies that 
Cabinet Decree No. 24 of 8 October 2 007 was published on 10 October 2007 in Gazeta Oficial  
(Official Journal) No. 25.895 of 10 October 2007,  enacting the adoption of definitive safeguard 
measures on imports of:  (1) printed film in rolls  for the manufacture of flexible packaging, of 
polypropylene, and (2) printed film in rolls for the manufacture of flexible packaging, of polyvinyl chloride (PVC), for a period of one (1) year.  
 Annexed hereto is a copy of Cabi net Decree No. 24 of 8 October 2007. 
  It is requested that this notification under Article 12.1(c) of the Agreement on Safeguards be 
brought to the notice of Members.  G/SG/N/8/PAN/1/Suppl.1 
G/SG/N/10/PAN/1/Suppl.1 Page 2 
 
 
  CABINET DECREE No. 24 
(of 8 October 2007) 
 
Imposing Definitive Safeguard Measures 
 
THE CABINET COUNCIL , 
In exercise of the authority conferred upon it by the Constitution and the law, 
 
WHEREAS 
 
 The Government of Panama recognizes the importance of taking action by introducing emergency measures to counteract imports of goods in such quantities or under such conditions as to 
cause or threaten to cause serious or material in jury to Panama's domestic industry, in accordance 
with the rules of the World Trade Organization;   
 
 The commitments undertaken by the Republic  of Panama upon accession to the World Trade 
Organization must be observed, in accordance w ith Law No. 23 of 1997 "Approving the Marrakesh 
Agreement Establishing the World Trade Organizati on and the Protocol of Accession of Panama to 
the said Agreement together with its annexes and schedule of commitments, bringing domestic 
legislation into line with international regulations, and enacting other provisions".  This Law reflects 
Panama's commitment to establishing and regulati ng trade protection procedures through its national 
legislation, in compliance with the guidelines and principles set out in the corresponding agreements; 
  Safeguard measures are regulated in the Republic of Panama by Decree Law No. 7 of 
15 February 2006 "Establishing rules for the protec tion and safeguarding of national production and 
enacting other provisions", in particular Title III:  Safeguard Measures;  Title IV: Administrative 
Investigation;  and Title V: Final Provisions, a nd by the Agreement on Safeguards, as contained in 
Law No. 23 of 1997;   An application for an administrative inves tigation with a view to the imposition of a 
safeguard measure was filed on 11 August 2006 with the National Directorate for the Administration 
of International Trade Agreements and Trade Protect ion of the Ministry of Trade and Industry by the 
enterprise Celloprint, S.A., as part of the domestic  industry producing plastic sacks and bags, on the 
basis of Articles 61 et seq. of Decree Law No. 7 of 2006;   Pursuant to Resolution No. 001 of 11 Septem ber 2006 of the Chief of International Trade 
Negotiations at the Ministry of Trade and I ndustry, published in national newspapers on 
24 September 2006 and in Official Journal of th e Republic of Panama No. 25,642 of 29 September 
2006, an administrative investigation was initiated in  respect of safeguard measures on the following 
products:  printed film in rolls for the manufacture of flexible packaging of monolayer polypropylene 
and printed sheets in rolls for the manufacture of flexible packaging of multilayer polypropylene for 
packaging machines, both classified under subheadi ng 3920.20.90 of Panama's Import Tariff;  and 
printed film in rolls for the manufacture of flex ible packaging of polyvinyl chloride (PVC) for 
packaging machines, classified under subhead ing 3920.49.00 of Panama's Import Tariff; 
  Pursuant to Resolution No. 003 of 21 May 2007 of the National Director for the Administration of International Trade Agreements and Trade Protection at the Ministry of Trade and 
Industry, it is recommended that the Cabinet Council , in accordance with the provisions of Article 74 
of Decree Law No. 7 of 2006, impose the defin itive safeguard measures n ecessary to remedy the 
serious injury to, and facilitate re -adjustment of, the domestic industry, in respect of two of the 
products under investigation;   G/SG/N/8/PAN/1/Suppl.1 
 G/SG/N/10/PAN/1/Suppl.1  Page 3 
 
 
   The aforementioned Resolution No. 003 clearly set out the elements supporting the 
application of the definitive safeguard measure,  as well as the relevant considerations, supporting 
evidence and period of application or duration recommended;  
 The parties exercised their right under Article  93 of Decree Law No. 7 of 2006 to appeal 
Resolution No. 003, the ruling on the appeal, set forth in Resolution No. 151 of 8 August 2007, confirming the measures recommended by the Investig ating Authority attached to the Ministry of 
Trade and Industry;  
In order to facilitate customs clearance of th e products subject to the definitive safeguard 
measures, it is necessary to establish a separate tariff  classification for each of the products at issue, 
by subdividing the relevant subheadings;   In accordance with Article 200, paragraph 7, of the Constitution of the Republic of Panama, 
the Cabinet Council is responsible for establishing and modifying tariffs, rates and other provisions 
pertaining to the customs regime,  
DECREES AS FOLLOWS: 
 Article 1. A definitive safeguard measure is he reby imposed on printed film in rolls for the 
manufacture of flexible packaging of monolayer pol ypropylene for packaging machines, produced by 
the biaxially oriented blow-moulding process, consisting of a 48.4 per cent surcharge on the c.i.f. value of the imported product, in addition to the 6. 0 per cent MFN tariff applicable in accordance with 
the tariff structure laid down in Article 6.  
Article 2. A definitive safeguard measure is hereby imposed on rigid (non-stretch) printed film in rolls 
for the manufacture of flexible packaging of pol yvinyl chloride (PVC) for packaging machines, 
consisting of a 63.8 per cent surcharge on the c.i.f. value of the imported product, in addition to the 
zero per cent MFN tariff applicable in accordance with  the tariff structure laid down in Article 6. 
 Article 3. Pursuant to Article 60 of Decree Law No. 7 of 2006 and Article 9.1 of the Agreement on 
Safeguards, the definitive safeguard measures sha ll not be applied against imports from developing 
country Members of the World Trade Organization, with the exception of China, Peru and Colombia, 
given that developing countries with an individual sh are of less than three per cent (3%) of imports of 
printed polypropylene and PVC film  into Panama do not collectively account for nine per cent (9%) 
or more of total imports. 
 
Article 4. The definitive safeguard measures shall remain in effect for a period of one (1) year, 
including the period of application of the provisional safeguard me asures established by 
Cabinet Decree No. 7 of 11 April 2007. 
Article 5. In the event of discrepancy between amounts of customs duty paid under the provisional 
measures implemented pursuant to Cabinet Decr ee No. 7 of 11 April 2007 and those deriving from 
the definitive safeguard measures estab lished by this Cabinet Decree, any surplus shall be refunded as 
provided, mutatis mutandis , in Article 49 of Decree Law No. 7 of 2006. 
 Article 6. Subheadings "3920.20.90 --- Other" and " 3020.49.00 --- Other" of Panama's Import Tariff 
are hereby subdivided and the appropriate tariff s ubheadings established for the purposes of a separate 
classification of products subject to the definitive safeguard measures, as follows: 
 G/SG/N/8/PAN/1/Suppl.1 
G/SG/N/10/PAN/1/Suppl.1 Page 4 
 
 
  SUBHEADING 
 DESCRIPTION CUSTOMS 
DUTY ITBMS * 
3920.20.20  --- Film, in rolls, printed, with a monolayer 
structure, of the types used to manufacture 
flexible packaging with packaging machines, 
originating from and/or produced in countries with imports subject to safeguard measures, as 
specified in Additional Note 2 to Chapter 39 54.4% 
 5.0%  
3920.20.90 --- Other 6.0%  5.0%  
3920.49 --- Other:   
3920.49.10  --- Film, sheeting or foil, non-stretch, printed, in 
rolls, of the types used to manufacture flexible 
packaging with p ackaging machines, 
originating in and/or produced in countries 
subject to safeguard measures, as specified in 
Additional Note 2 to Chapter 39 63.8%  5.0%  
3920.49.90 --- Other  FREE  5.0%  
* ITBMS = Tax on the Transfer of Movable Tang ible Property and the Provision of Services 
Article 7. Chapter 39 of the National Import Tariff is hereby supplemented by an Additional Note 
stipulating the following: 
 
2. (a) Customs duty on products of tariff subheadings 3920.20.20 and 3920.49.10 includes 
the duties applied pursuant to the definitiv e safeguard measures, which shall remain 
in effect for the duration established in  Article 4 of Cabinet Decree No. 24 of 
8 October 2007.  Once the measures in question have come to an end, customs duty on products of subheadings 3920.20.20 sh all be 6.0 per cent, and products of 
subheading 3920.49.10 shall be duty FREE.  Expiry of the definitive safeguard 
referred to in this Note shall be notified by  a reasoned decision issued by the Ministry 
of Trade and Industry through the National Directorate for the Administration of International Trade Agreements and Trade Protection. 
 
(b) Pursuant to Articles 1 and 2 of Cabi net Decree No. 24 of 8 October 2007, the 
definitive safeguard measures shall not be a pplied, in accordance with Article 60 of 
Decree Law No. 7 of 2006 and Article 9.1 of the Agreement on Safeguards, against 
imports from developing count ry Members of the World Trade Organization, with the 
exception of China, Peru and Colombia. 
 
Article 8. Pursuant to Article 200, paragraph 7,  of the Constitution of the Republic of Panama, a 
certified copy of this Cabinet Decree sh all be sent to the National Assembly. 
 Article 9. This Cabinet Decree shall take  effect on the date of its enactment. 
  G/SG/N/8/PAN/1/Suppl.1 
 G/SG/N/10/PAN/1/Suppl.1  Page 5 
 
 
  FOR PUBLICATION AND IMPLEMENTATION 
 Done at Panama City on the eighth day of Oct ober of the year two thousand and seven (2007). 
 
MARTÍN TORRIJOS ESPINO 
President of the Republic The Minister of the Interior and Justice, DANIEL DELGADO DIAMANTE The Minister of Foreign Affairs, 
SAMUEL LEWIS NAVARRO 
The Minister of Education, BELGIS CASTRO JAÉN The Minister of Public Works, BENJAMÍN COLAMARCO PATIÑO 
The Minister of Health, 
ROSARIO TURNER MONTENEGRO The Minister of Labour and Labour Development, EDWIN SALAMÍN The Minister of Trade and Industry, ALEJANDRO FERRER 
The Minister of Housing, 
BALBINA HERRERA ARAÚZ The Minister of Agricultural Development, GUILLERMO SALAZAR NICOLAU The Minister of Social Development, 
MARÍA ROQUEBERT LEÓN 
The Minister of the Economy and Finance, HÉCTOR E. ALEXANDER H. The Minister for Canal Affairs, DANI KUZNIECKY RUBÉN AROSEMENA VALDÉS 
Minister of the Presidency and 
Secretary-General of the Cabinet Council  
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