WORLD TRADE  
ORGANIZATION  G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 
G/SG/N/1/PAN/2 
4 August 2006 
 (06-3765) 
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 
 
  The following communication, dated 25 July  2006, has been received from the Permanent 
Mission of Panama.  
_______________ 
 
  The Republic of Panama, pursuant to Ar ticle 18.5 of the Anti-Dumping Agreement 
(Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994), 
Article 32.6 of the Agreement on Subsidies and Countervailing Measures and Article 12.6 of the 
Agreement on Safeguards, as well as the related decision adopted by the Committee on Safeguards 
(G/SG/N/1), hereby notifies its laws and regulati ons relating to anti-dumpi ng, countervailing duty and 
safeguard procedures.   In this connection, a copy is herewith s ubmitted of Decree Law No. 7 of 15 February 2006 
"establishing rules for the protection and safegua rding of national produc tion and enacting other 
provisions", published in Gaceta Oficial (Official Journal) No. 25,491 of 22 February 2006. 
  Under Articles 3, 24 and 61 of the above-men tioned Decree Law No. 7, the Ministry of Trade 
and Industry is responsible for dealing with ap plications for the initiation of administrative 
investigations regarding the application of an ti-dumping, countervailing and safeguard measures. G/ADP/N/1/PAN/2 
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  ANNEX 
 
NATIONAL EXECUTIVE ORGAN 
DECREE LAW NO. 7 
(of 15 February 2006) 
 
Establishing Rules for the Protection and Safeguarding of National Production 
and Enacting Other Provisions 
 
THE PRESIDENT OF THE REPUBLIC, 
in exercise of his constitutional powers and in  particular the power conferred upon him 
by Article 1, paragraphs 3 and 4,  of Law No. 1 of 3 January 2006, 
 
and having heard the favourable opinion of the cabinet council 
 
HEREBY DECREES: 
 
Title I 
 
Purpose, Coverage and Competence 
 
Article 1.  Purpose.  The purpose of this Decree Law is to establish mechanisms and procedures of 
protection and defence against unfair trading practices, as well as to introduce emergency measures to counteract imports of goods in such quantities or under such conditions as to cause or threaten to 
cause serious or material injury to national producers of like or directly competitive products, or to a 
domestic industry, and/or material retardation of the establishment of a domestic industry or branch of 
production.  Article 2.  Coverage.   The provisions of this Decree Law sh all apply to natural or legal persons, 
associations, cooperatives and any ot her group engaged in the producti on, marketing, import or export 
of products, including entities of other countries, if  their operations, activities or business transactions 
generate or are capable of generating consequences or adverse effects in the Republic of Panama. 
 Article 3.  Scope and Competence.   The provisions of this Decree Law are public policy provisions 
applicable throughout the Republic of Panama.  For administrative purposes, the Executive Organ, 
through the Ministry of Trade and Industry, here inafter the Ministry, shall be responsible for 
implementing these provisions.  
Title II 
 
Unfair Trading Practices 
 
Chapter I 
 
Definitions 
 Article 4.  Definitions.   For the purposes of this title, the following definitions shall apply: 
 1. Financial contribution:   Government practice involving a direct transfer of funds 
(e.g. grants, loans and equity infusion), pot ential direct transfers of funds or liabilities 
(e.g. loan guarantees), or the forgoing or non-collection of public revenue otherwise due  G/ADP/N/1/PAN/2 
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  (e.g. fiscal incentives such as tax credits), or where a government provides goods or services 
other than general infrastructure, or purchases goods, or where a government makes payments to a funding mechanism or entrusts one or more of the functions described above 
to a private entity. 
 2. Objective criteria or conditions:  criteria or conditions which are neutral, which do not 
favour certain enterprises over others, and whic h are economic in nature and horizontal in 
application. 
 
3. Injury:   material injury caused to a domestic industry, a threat of material injury to a 
domestic industry, or material retardation of the establishment of such a domestic industry, 
unless otherwise specified. 
 
4. Material injury:   any material prejudice, loss or impairment, or deprivation of any 
significant lawful and normal gain which the dom estic industry suffers as a result of any of 
the unfair trading practices. 
 5. Anti-Dumping duty:   a special duty, independent of import duties, established with a view 
to counteracting or preventing dumping. 
 
6. Countervailing duty:   a special duty, independent of import duties, established with a view 
to counteracting any direct or indirect subsid ization of the manufacture, production or export 
of a foreign product. 
 
7. Certain enterprises:   an enterprise, entity, organization, industry or any form of 
association;  or a group of enterprises, entities, organizations or industries.  This definition applies to enterprises, entities, organizations or any form of association, whether private, 
public or semi-public. 
 8. Dumping:   the introduction of products from anothe r country into the national territory at 
less than their normal value. 
 9. Dumping to be condemned:   dumping which causes or threatens material injury to an 
established domestic industry or which materia lly retards the establishment of a domestic 
industry. 
 
10. Facts available:   facts substantiated by evidence and da ta provided by the interested parties 
or additional parties in a proper and timely fash ion, and by the information gathered by the 
investigating authority. 
 11. Margin of dumping:   the price differential resulting from a fair comparison of the normal 
value of the foreign like product and the export price of the product destined for the 
domestic market, in accordance with the provisions of this Title. 
 12. WTO:   World Trade Organization. 
 
13. Interested parties:   exporters, foreign producers or  importers of the product under 
administrative investigation;  trade or busin ess associations, a majority of whose members 
are producers, exporters or importers of the pr oduct under administrative investigation;  the 
government of the exporting count ry, and known producers or trade or business associations 
of the like product in the national territory. G/ADP/N/1/PAN/2 
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 This list is not exhaustive, and the Ministry  of Trade and Industry shall not be prevented 
from including other known persons as interested parties in the administrative investigation. 
 
14. Unfair trade practices:   subsidization and dumping. 
 15. Domestic industry:   domestic producers as a whole of the like products or those of them 
whose collective output of the products cons titutes a major proportion of the total domestic 
production of those products destined for internal consumption, provided that they are not 
related to the exporters or importers or are themselves importers of the product under 
investigation. 
  Where the Ministry of Trade and Industry dete rmines that one or more producers are related 
to the exporters or importers, or are themse lves importers of the product concerned by the 
application for investigation, this term may be interpreted as referring to the rest of the 
producers, without expressly specifying those that are related. 
 16. Like product or good:   a product or good which is alike in all respects to the one with 
which it is compared, or which, although not a like in all respects, h as characteristics that 
strongly resemble those of the product or goo d under consideration, taking into account 
elements such as its nature, use or function. 
 17. National territory:   customs territory of the Republic of Panama. 
 
18. Normal value:   the comparable price for the like pr oduct when destined for consumption in 
the exporting country, in the ordinary course of trade. 
 
Chapter II 
 
Subsidies 
 
Article 5.  Definition of subsidy.   Subsidy shall be taken to mean any benefit derived from any of the 
following actions:  1. The direct or indirect granting of any fi nancial contribution, in centive, tax concession or 
assistance by the State or any of its institutions  for the manufacturing, production, marketing 
or export of a good, including any assistance,  support or benefit granted for transport. 
 2. The forgoing or remission of, or exemption from, any public revenue  which would otherwise 
be due. 
 
3. The granting of a financial contribution, in centive, tax concession or assistance and forgoing 
or exemption in respect of inputs (goods and/ or services) subsequently to be used in the 
production of a final product. 
 4. The provision of goods  or services other than general infrastru cture by a State or by any of its 
institutions or agencies. 
 5. Any of the benefits enumerated in paragraphs 1 and 4 above, when a State or any of its 
institutions or agencies entrusts them to, or directs them to be provided by, one or more  G/ADP/N/1/PAN/2 
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  private bodies, and those benefits correspond to practices normally followed by or within the 
competence of a government. 
 
6. The granting of a financial contribution by a Stat e or by any of its institutions or agencies, in 
the form of payments to a funding mechanism. 
 7. Any other form of income or price maintena nce which directly or indirectly benefits or 
adversely affects the export product. 
 
Article 6.  Specificity.   A subsidy shall be considered specific when any of the following 
circumstances contribute to its application:  1. 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. 
 2. The State or the granting authority, or the legislation pursuant to which it operates, earmarks 
the subsidy for exported products or products inco rporating domestic raw materials or inputs. 
 
3. The subsidy is limited to certain enterpri ses located within a designated geographical region 
within the jurisdiction of the State or granting authority. 
  Even though a subsidy may be specific, but is not classified in the terms set out above, the Ministry may determine the subsidy to be specific ha ving regard to the following elements:  exclusive 
use of the subsidy by a limited number of enterpri ses or by an industry;  predominant use of the 
subsidy by certain enterprises or industries;  th e granting of disproportionately large amounts of 
subsidy to certain enterprises;  or the fact that the manner in which discretion has been exercised by 
the granting authority indicates that the subsidy is not generally available.   Notwithstanding the provisions of the preceding pa ragraphs, a subsidy sha ll not be considered 
specific where the criteria or co nditions governing eligibility for th e subsidy and/or its amount are 
objective, neutral and horizontal in application, so that they do not favour a certain enterprise or industry, the subsidy is not limited to a certain en terprise or industry, and eligibility for the subsidy 
and its amount are automatic.  
Article 7.  Determination of subsidies subject to countervailing duties.   A subsidy shall be subject 
to the imposition of countervailing duties only when it is specific.  The determination of subsidization, 
injury and causal link and the recommendation of  the imposition of countervailing duties shall be 
made by the Ministry following an investigation,  in accordance with the administrative procedure 
provided for in this Decree Law.  
Chapter III 
 
Dumping 
 
Article 8.  Determination of dumping to be condemned.   The determination of the existence of a 
dumped product whose introduction into the national te rritory causes injury to the domestic industry, 
and the recommendation that anti-dumping duties be imposed shall be made by the Ministry following an investigation, in accordance with the administrative procedure provided for in this 
Decree Law.  G/ADP/N/1/PAN/2 
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  Article 9.  Determination of the margin of dumping.   In order to determine the margin of dumping, 
the Ministry shall determine the normal value of  the like product in the exporting country in the 
ordinary course of trade, and the export pri ce, and shall make a fair comparison thereof. 
 
Article 10.  Determination of normal value.   The normal value shall be determined on the basis of 
the price of the like product or good destined for consumption in the exporting country, in the ordinary course of trade.  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 the sales in the domestic market of the exporting country, such sales do not permit 
a proper comparison, the normal value shall be determined by one of the following means: 
 1. By comparison with a comparable price of the like product when exported to an appropriate 
third country, provided that this price is representative. 
 
2. By comparison with the cost of production of the product in the country of origin, plus a 
reasonable amount to cover administrative, selling and general costs, and for profits. 
 Article 11.  Determination of export price.   The export price shall be 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 the Ministry considers that the export price is 
unreliable because of association or a compensato ry arrangement between the exporter and importer 
or a third party, the export price may be construc ted on the basis of the price at which the imported 
products are first resold to an independent buyer;  or  if the products are not resold to an independent 
buyer, or not resold in the condition as imported, on a reasonable basis. 
 Article 12.  Fair price comparison.   In order to determine the margin of dumping, the fair 
comparison between the normal value and the export price shall be made with due regard for the 
following parameters:  
1. On the basis of sales made at as nearly as possi ble the same time, using the exchange rate in 
effect at the time. 
 2. On the basis of sales made at the same level of  trade, which shall in principle be the ex factory 
level. 
 
3. Taking into account differences which affect  price comparability, including differences in 
conditions and terms of sa le, taxation, levels of trade, quan tities, physical characteristics and 
any other differences which are also dem onstrated to affect price comparability. 
 4. The Executive Organ shall establish the appropr iate statistical methodology to be used for 
making fair price comparisons for the purpose of determining dumping margins. 
 
Chapter IV 
 
Injury 
 
Article 13.  Determination of injury.  A determination of injury shall be based, inter alia , on 
positive evidence and shall involve an objective examination of:   G/ADP/N/1/PAN/2 
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  1. The volume of imports subject to unfair trade practices and the effect of such practices on 
prices in the domestic market for like products. 
 
2. The impact of these imports on domestic producers of such products. 
 Article 14.  Determination of threat of material injury.  In order to determine a threat of material 
injury to the domestic industry, account shall be taken, inter alia , of the following factors:  an increase 
in dumped imports into the domestic market;  the e xport capacity of the exporter under investigation;  
the likelihood of domestic price depression or s uppression caused by the prices of those imports, and 
the stocks or inventories of the product under investigation. 
 
 No one of these factors by itself can necessarily give decisive guidance, but the totality of the 
factors considered must lead to the conclusion th at, unless protective action is taken, further dumped 
imports are imminent that will cause material injury. 
 Article 15.  Cumulative assessment of the eff ects of imports from two or more countries.  In 
measuring the injury or threat of injury, the volu me and effects of imports of products from two or 
more countries may be cumulated if such products are under investigation and are competitive with 
each other and with the domestic product, provided the volume of imports from each country is not 
negligible and the margin of dumping or am ount of the subsidy of each country is not de minimis . 
 Article 16.  De minimis  subsidies and dumping.  A subsidy shall be considered to be de minimis  if it 
less than one per cent (1%) ad valorem . 
 
 If the product is imported from a devel oping country Member of the World Trade 
Organization, a maximum subsidy level of two per cent (2%) ad valorem , calculated on a per unit 
basis, shall be tolerated.   Similarly, the volume of subsidized imports from a developing country Member of the World 
Trade Organization shall be considered negligible if it accounts for less than four per cent (4%) of 
total imports of the like product, unless the impor ts from developing country Members of the WTO 
which individually account for less than four per cen t (4%) of total imports collectively account for 
more than nine per cent (9%) of imports of the like product.   The margin of dumping shall be considered to be de minimis  if this margin is less than 2 per 
cent (2%), expressed as a percentage of the export price. 
  The volume of dumped imports shall normally be  regarded as negligible if the volume of 
dumped imports from a particular country Member of the WTO is found to account for less than three per cent (3%) of imports of the like product, unless countries which individually account for less than three per cent (3%) of the imports of the said pr oduct collectively account for more than seven per 
cent (7%) of such imports. 
 Article 17.  Determination of de minimis  dumping and subsidization.  When it is determined that 
the subsidy or the dumping is de minimis , or when it is determined that the import of subsidized or 
dumped products is negligible, in accordance with Ar ticles 15 and 16 above, the investigation shall be 
terminated without the imposition of any protective measure.  
 Article 18.  Causal link.  There shall be a causal link between the imports that are the subject of 
unfair trade practices and the injury to the domest ic industry when the actual or potential material G/ADP/N/1/PAN/2 
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  injury, damage, prejudice or impairment to the do mestic industry producing the like product is a 
consequence of such imports.  
 
Chapter V 
 
Countervailing or anti-dumping duties 
 
Article 19.  Countervailing or anti-dumping duties.  Countervailing or anti-dumping duties shall in 
no case exceed the established subsidy or margin of dumping.  
  Such duties shall remain in force only as l ong as is necessary to counteract the unfair trade 
practice that is causing the injury.  However, any definitive countervailing or anti-dumping duty shall 
be terminated at the latest five (5) years after the date on which it was imposed, unless the Ministry, in 
a review initiated ex officio or at the request of an authorized party, prior to that date, determines that 
the expiry of the duty would be likely to lead to  continuation or recurrence of subsidization or 
dumping and injury, and its report shall be submitte d to the Cabinet Council for consideration and 
decision.  Article 20.  Review.   The Ministry, at the request of an interested party or ex officio, and provided 
that a reasonable period of time has elapsed, may re view or examine the application of a definitive 
countervailing or anti-dumping duty, based on changed circumstances, facts or values used in the investigation, with a view to determining whet her the measures are still necessary or whether they 
should be modified.  The results of such revi ews shall be submitted to the Cabinet Council for 
consideration and decision. 
 
Article 21 .  Revocation or modification.  If, as result of a review, the Ministry determines that the 
countervailing or anti-dumping duty is no longer just ified or should be modified, it shall issue a report 
and send it to the Cabinet Council for the latter to c onsider either immediate termination or suitable 
modification of the duty, whichever is appropriate. 
 
Article 22.  Imports from third countries.   The provisions of this D ecree Law shall apply in full 
where the products that are the subject of unfair tr ade practices are not imported directly from the 
country of origin but from a third country, in which case the transaction shall be deemed to have taken 
place between the country of orig in and the Republic of Panama. 
 
Article 23.  Newcomer review.   When a definititve countervailing or anti-dumping duty is being 
applied to certain products, exporte rs whose products have not been investigated or who have 
exported no goods during the period of the adminsitra tive investigation, may request the investigating 
authority to initiate an administrative procedur e for new exporters with a view to assessing and 
issuing a recommendation on individual countervaili ng duties or individual margins of dumping, 
provided that: 
 
1. Their exports to the national territory of the good subject to the countervailing or anti-
dumping duties were subsequent to the period under investigation in the proceedings that gave 
rise to the countervailing or anti-dumping duty.  The exporters must satisfy the investigating 
authority that the volume of exports during th e period of review is representative;  and 
 
2. They show that they are not related in any way to the producers or exporters in the exporting 
country determined to be subject to a specific countervailing or anti-dumping duty. 
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  Chapter VI 
 
Administrative Investigation of Unfair Trade Practices 
 
Section 1 
 
The Administrative Investigation 
 Article 24.   Initiation of the administrative investigation.   Administrative investigations shall be 
initiated at the request of a party and may, in special circumstances, be initiated ex officio  when the 
Ministry has sufficient evidence of imports that are the subject of unfair trade practices, injury to a 
domestic industry and causal link to justify such initiation.  
 The initiation of an administrative investiga tion on subsidies or dumping shall not be an 
obstacle to customs clearance or to the granting of import permits by any other government entity.  Article 25.  Authority of precedural rules and practice.   The proceedings shall at all stages 
automatically be governed by, inter alia , the principles of promptness, efficiency, publicity, 
impartiality and avoiding excessive formality. 
 
Article 26.  Entitlement.   The following are entitled to initiate proceedings: 
 1. The domestic industry prejudiced, injured or affected by imports that are the subject of unfair 
trade practices; 
 
2. Associations of producers that are being prejudi ced, injured or affected by imports that are the 
subject of unfair trade practices; 
 3. The Ministry of Trade and Industry.  
Article 27.  Evidence of entitlement.   An application for the initiation of an administrative 
investigation shall be considered to have been made  by or on behalf of the domestic industry if it is 
supported by those domestic producers whose collec tive output constitutes more than fifty per cent 
(50%) of the total production of the like product or  good, expressing either support for or opposition 
to the application. 
 
 Similarly, the investigation shall be in itiated when the domestic producers expressly 
supporting the application account for twenty five pe r cent (25%) or more of the total production of 
the like product or good produced by the domestic industry.   The Ministry shall determine whether the above  conditions have been met, using statistical 
techniques.  In the case of fragmented productio n involving an exceptionally large number of 
producers, sampling techniques may be used.  In as certaining compliance with this requirement, the 
Ministry may request the accreditation of every pers on acting on behalf of the domestic industry. 
 Article 28.  Initiation of an administrative investigation at the request of a party.   A n  
administrative investigation at a party's request shal l be initiated by means of an application drafted 
by a competent attorney setting forth the argument s and reasons of fact and of law on which the 
application is based.  G/ADP/N/1/PAN/2 
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   Without prejudice to any additional information required by regulation, the application shall 
contain the following minimum information:  
1. Particulars of the applicant. 
 2. Detailed description of the imported good or pr oduct, including tariff heading, characteristics 
and other distinguishing particulars. 
 
3. Description and information regard ing the domestic industry concerned. 
 4. Detailed description of the like good or product of the domestic industry, and other 
distinguishing particulars. 
 
5. The percentage of total domestic producti on of the product or good, represented by the like 
product or good which the applicant produces for the domestic market. 
 6. Names and addresses of the importers  and, if known, of the exporters. 
 7. Volume and prices of the imports that are the subject of unfair trade practices. 
 
8. Margin of dumping or subsidies and other f acts and data leading to the presumption of the 
existence of unfair trade practices. 
 9. Country of origin and of provenance of the imports;  and 
 
10. Analysis, factors, data or documents showing material injury or threat thereof or material 
retardation in the establishment of the corr esponding domestic industry, as a result of the 
unfair trade practice cited in the application. 
  Any information or data to be filed with the application which are issued by a government 
entity may be deemed to have been filed with the Ministry if the applicant provides reliable evidence 
of the formalities completed to obtain them.   The Ministry shall avoid all publicity rega rding the application for initiation of an 
investigation until the latter is officially initiated. 
 
Article 29.  Procedure.   Upon receiving the application, the Mi nistry shall examine the information it 
contains together with any other information before it, in order to determine whether or not there is 
sufficient evidence to justify the initiation of an ad ministrative investigation.  The Ministry shall 
determine in a reasoned decision whether or not an administrative investigation is to be initiated. 
 
 If the application does not meet the requirements set forth in this Decree Law or its 
Regulations or if the information submitted, while  meeting those requirements, is inaccurate or 
unclear, or if additional information is deemed to be necessary, the Ministry shall request the 
applicant within five (5) working days of the date  of submission of the application, to correct or 
supplement the information within ten (10) working da ys of such notification, so that the applicant 
may adjust the application or submit relevant evidence.   If the applicant fails to meet this requirement 
within the stated period, the application shall be  rejected and shelved by a reasoned decision.  A 
reasonable extension to the above -mentioned period may be granted by the Ministry, either upon a 
reasoned request from a party or when circumstances so warrant.   G/ADP/N/1/PAN/2 
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   Similarly, the Ministry may reject the application when the information submitted is false or 
immaterial, or where the application is  vexatious, inadmissible or unjustified. 
 
 Once in possession of all the requisite information, the Ministry shall have 
fifteen (15) working days in which to assess the merits of the application and to issue a reasoned 
decision either to initiate or to reject the administrative investigation.  Article 30.  Notification to the gove rnment of the exporters' country.   Between the receipt of a 
party's application for initiation of an administrativ e investigation and the issuing of the decision to 
initiate the investigation, the Ministry shall notif y, through ordinary or diplomatic channels, the 
government of the country of the exporters who se goods are the subject of the application. 
 Article 31.  Publication of the initiation of an administrative investigation.   Upon initiation of the 
investigation, the Ministry shall publis h a summary of the application in the Gaceta Oficial  or in a 
national newspaper recognized to be widely circulated.   If the investigation is initiated ex officio, the Ministry shall publish a summary of the decision 
to initiate the investigation in the Gaceta Oficial  or a national newspaper recognized to be widely 
circulated. 
 
Article 32.  Notification to government entities.   A copy of the application or of the decision to 
initiate an administrative investigation shall be sent to the Ministry of Agricultural Development when 
the like product or good falls within its competen ce and to the Ministry of the Economy and Finance, 
with a view to their providing information, statis tics and other relevant doc umentation to supplement 
the evidence on file. 
  The Ministry may at any time send to these or any other government entities questionnaires and/or requests for specific information, in order to  further the investigation.  Such questionnaires 
and/or requests shall be answered and/or completed within thirty (30) calendar days at the latest. 
 
Article 33.  Communication.   The decision to initiate an admi nistrative investigation shall be 
communicated to the interested party or parties for a reply within thirty (30) calendar days, starting 
from the receipt of the communication or seven (7) cale ndar days after the date of its dispatch or its 
transmission to the competent diplomatic representa tive of the exporting country or countries. 
 
 The communication shall contain a copy of the decision to initiate the investigation, and of 
the application, where the procedure is at the request  of a party, and any attachments that contain no 
confidential information, or, in the case of ex offi cio investigations, the relevant documents together 
with a questionnaire detailing the points to wh ich reference should be made in the reply. 
  A copy of the above-mentioned documentation shall be sent to the authorities of the exporting 
countries in a communication to the accredited diplomatic  or consular representation in the country, or 
in accordance with the international agre ements to which Panama is a party. 
 Article 34.  Applications for extension.   At the request of an interested party, an extension to the 
period for communication referred to in the preceding article may be granted provided that there is 
sufficient justification for doing so and that it  is feasible.  An extension shall not exceed 
thirty (30) calendar days.   If the interested party fails to reply within th e prescribed time-limit, the investigation shall be 
pursued on the basis of the best information available. G/ADP/N/1/PAN/2 
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  Section 2 
 
Evidence 
 
Article 35.  Evidence.   The Ministry may seek from the intere sted parties any evidence, information 
and data it deems relevant and may use forms for th e purpose.  If an interested party denies access to 
the information sought or fails to provide it in the form or within the time-limit prescribed, or 
significantly impedes the investigation, the Minist ry shall make its recommendations on the basis of 
the best information available. 
  The Ministry may request domestic producers, distributors or traders of the product or good, and customs officials, agents, attorneys or consignees of the importers or any other person it deems appropriate, to supply informati on and data available to them. 
 
 The Ministry shall take the necessary steps to ensure that the evidence of dumping, injury to 
the domestic industry and causal link is examined upon receipt of a party's application for an investigation or notification of an ex officio investigation, and thereafter during the course of the investigation.  
Article 36.  Examination of evidence.   The Ministry shall require and examine such evidence as is 
necessary to determine the accuracy of the facts under investigation, in relation to the submissions of 
the parties and in accordance with the provisions of  this Decree Law, within a period not exceeding 
thirty (30) calendar days following the deadline for the communication.  The Ministry may extend this 
period where a case so requires. 
 
 To further the proceedings, the Ministry ma y likewise at any time request any kind of 
information or technical parameters from any of the government entities, which shall be required to 
supply them within thirty (30) calendar days at the latest.   It may also of its own motion request the in terested parties to supply at their cost 
questionnaires, expert reports, opinions or technical parameters, and to take such administrative steps 
as may contribute to verification of the facts alleged.  Article 37.  Evidence abroad.   With a view to verifying the info rmation received or obtaining further 
details, the Ministry may conduct investigations an d obtain evidence in the territory of the exporting 
country, provided that it has so notified the authorities of the exporting country through ordinary or 
diplomatic channels and has encountered no objection.   The investigation and examination of eviden ce may also take place in the facilities of the 
exporting enterprise subject to the latter's prior approval.  
Article 38.  Access to information.   Where the authorities of the exporting country or the interested 
parties deny access to the necessary information, fail to provide such informa tion within a reasonable 
period or significantly impede the investigation, preliminary or definitive conclusions may be drawn 
up on the basis of the facts available, including tho se appearing in the application for the initiation of 
the investigation, that have been submitted by the domestic industry. 
  G/ADP/N/1/PAN/2 
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  Section 3 
 
Undertakings and Suspension of Investigation 
 
Article 39.  Conciliation.   During the administrative investigation, the interested parties may by 
mutual agreement request the Ministry to hold a c onciliation meeting.  At this meeting, proposals or 
undertakings may be put forward to resolve the case  and suspend the administrative investigation, 
which, if admissible, shall be approved or accepted by the Ministry.  The Ministry may nevertheless 
either pursue the administrative investigation to the recommendation stage or suspend it there and 
then.   The Ministry has the authority to review a nd ascertain compliance with the agreements or 
undertakings for resolving the case or suspending the administrative investigati on.  In the event of 
non-compliance, the Ministry may resume the admini strative investigation from the stage at which it 
was suspended, or, in the event of the ad ministrative investigation having reached the 
recommendation stage, draw up a final decision for consideration by the Cabinet Council. 
 Article 40.  Publication.   A summary of the Ministry's decisi on to approve or accept an undertaking, 
which shall include all relevant information on the factual and legal considerations and the reasons 
that led to the acceptance of the un dertaking, shall be published in the Gaceta Oficial  or in a national 
newspaper recognized to be widely circulated, taking due account of confidentiality provisions. 
 
Section 4 
 
Hearings and Final Decision 
 
Article 41.  Hearings.   Having completed examination of the evidence and before issuing a final 
decision, the Ministry shall summon all the interested  parties to a hearing for the purpose of informing 
them of, and hearing their views on, the facts under c onsideration, which are to serve as a basis for the 
decision whether or not to recommend definitive meas ures.  After the hearing, the parties shall be 
given three (3) working days in which to submit wr itten arguments in defence of their interests. 
  Representatives of the Ministry of Agricultu ral Development and the Ministry of the 
Economy and Finance may likewise attend the hearing.  
Article 42.  Final decision.   Upon receipt of the above-mentioned submissions, the Ministry shall 
have ten (10) working days within which to issu e a reasoned final decision with a recommendation to 
the Cabinet Council as to whether or not defin itive countervailing duties or anti-dumping duties 
should be applied to the produc ts under administrative investigation for unfair trade practices. 
 Article 43.  Notification to the Cabinet Council.  Once the final decision of the administrative 
investigation has been issued, the Ministry shall send an authenticated copy  thereof to the Cabinet 
Council for consideration and a decision.  Article 44.  Imposition and application of countervailing duties and anti-dumping duties.   The 
Cabinet Council shall examine the decision sent by the Ministry and shall decide as to the imposition 
of definitive countervailing duties or anti-dumping du ties.  The Cabinet Council's decision imposing 
definitive countervailing duties or anti-dumping duties and setting such duties shall be notified to the 
interested parties and published in the Gaceta Oficial , taking due account of the provisions on 
confidentiality.  G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 G/SG/N/1/PAN/2 
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   Definitive countervailing duties or anti-dumping duties established by the Cabinet Council 
shall be implemented by the Directorate-General of Customs of the Ministry of the Economy and Finance at the time of importation. 
 
Section 5 
 
Provisional measures 
 Article 45.  Requirements.   During the investigation period, the Ministry may recommend to the 
Cabinet Council in a reasoned decision the adoption of provisional measures in order to prevent 
imports that are the subject of unfair trade practic es from imminent injury to the domestic industry 
that would be difficult to repair.  
 The reasoned decision shall set forth the applican t's arguments, if the investigation is at a 
party's request;  the evidence on file and the case for imposing a provisional measure.   No provisional measure shall be applied befo re a period of sixty (60) calendar days has 
elapsed from the date of the decision to initiate the administrative investigation. 
 
Article 46.  Restrictions.   The provisional measures shall cons ist of provisional countervailing or 
anti-dumping duties.  It shall not be possible to im pose both types of provisional measure in response 
to one situation resulting from subsidies or dumping.  Article 47.  Application.   The provisional measures shall invol ve the deposit by the importer of a 
guarantee in accordance with the procedures laid dow n by the Directorate-General of Customs of the 
Ministry of the Economy and Finance.   The amount of the guarantee may not exceed the subsidy or margin of dumping calculated on 
a provisional basis;  and the duration of the provisional measures may not exceed four (4) months in the case of subsidies, and six (6) in the case of dumping. 
 
Article 48.  Setting and imposition of duties.   The Ministry shall recommend the provisional 
countervailing or anti-dumping duties, which shall be  set by the Cabinet Council and applied by the 
Directorate-General of Customs of the Ministry of the Economy and Finance.  Article 49.  Differences in the amounts of provi sional and definitive countervailing or anti-
dumping duties.   If, in an administrative investigation, provisional countervailing or anti-dumping 
duties are established, and definitive countervaili ng or anti-dumping duties are imposed subsequently, 
the difference in the amounts of the former and the latter shall be ascertained, so that if the definitive 
countervailing or anti-dumping duty is  higher than the amount or duty established by the provisional 
measure, the difference shall not be claimed.  Howe ver, if the definitive duty is lower than the amount 
or duty established by the provisional measure, the amount in excess shall be reimbursed immediately 
or the guarantee released for the corresponding amount.  Article 50.  Retroactive application of defini tive countervailing or anti-dumping duties.  A 
definitive countervailing or anti-dumping duty ma y be applied as from the date from which a 
provisional measure could have been applied. 
  Notwithstanding the above, a definitive counter vailing or anti-dumping duty may be levied on 
products entered for consumption not mo re than ninety (90) days prior to  the date of application of the 
provisional measures, where the Ministry determines  in respect of the product under investigation:  G/ADP/N/1/PAN/2 
 G/SCM/N/1/PAN/2 
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  1. That there is a history of unfair trade practic es causing injury, or that the importer was aware, 
or should have been aware, that the exporter was engaging in unfair trade practices and that 
these would cause injury, and  
 
2. That the injury is caused by massive imports of a product that is the subject of unfair trade 
practices entering over a relatively short period which are likely seriously to undermine the 
remedial effect of the definitive countervailing or anti-dumping duty to be applied, provided 
that the importers concerned have been given the opportunity to comment. 
 
Article 51.  Publication.   The operative part of the provisional measure adopted shall be published in 
the Gaceta Oficial or in a national newspaper recognized to be widely circulated. 
 
Title III 
 
Safeguard Measures 
 
Chapter I 
 
Definitions 
 
Article 52.  Definitions.   For the purposes of this Title th e following definitions shall apply: 
 1. Threat of serious injury:   serious injury that is clearly imminent. 
 
2. Increased imports:   imports that have increased in su ch quantities in absolute terms or 
relative to domestic production as to cause or th reaten to cause serious injury to a domestic 
industry. 
 3. Serious injury:   a significant overall impairment of a domestic industry. 
 
4. Domestic industry:   the producers as a whole of like or directly competitive products, 
operating within the national territory, or those producers whose collective output of like or directly competitive products constitutes a ma jor proportion of the total domestic production 
of those products. 
 
5. Safeguard measures:   instruments for temporary protectio n that are applied to prevent or 
remedy serious injury or threat thereof to the domestic industry, caused by increased imports, 
in order to facilitate adjustment. 
 6. WTO:   the World Trade Organization. 
 
7. Directly competitive product or good:   a product which, although not the same as the 
product to which it is compared, is essentially  equivalent for commercial purposes, being 
intended for the same use and interchangeable with it. 
 8. Like product or good:   a product or good which is alike in all respects to the one with which 
it is compared, or which, although not alike in all respects, has charact eristics that strongly 
resemble those of the product or good under cons ideration, taking into account elements such 
as its nature, use or function. 
 9. National territory:   the customs territory of the Republic of Panama. G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 G/SG/N/1/PAN/2 
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  Chapter II 
 
Safeguard Measures and Serious Injury 
 
Article 53.  Determination of safeguard measures.   The Ministry, in determining application of a 
safeguard measure, shall consider whether the serious in jury or threat thereof is a result of or related 
to the increase in imports of like or directly competitive products.  
Article 54.  Determination of serious injury or threat thereof.   In determining whether increased 
imports have caused or are threatening to cause serious injury to a domestic industry, in the 
administrative investigation the Ministry shall ev aluate all relevant factors of an objective and 
quantifiable nature having a bearing on the situation of  that industry, particularly the rate and amount 
of the increase in imports of the product concerned,  in absolute and relative terms, the share of the 
domestic market taken by the increased imports, changes in the level of sales, production, 
productivity, capacity utilization, profits and losses and employment.  Article 55.  Causal link.   In the administrative investigatio n, the Ministry shall ascertain the 
existence of a causal relationship between the incr ease in imports of the product under investigation 
and the serious injury or threat thereof to the domestic industry. 
 
 When factors other than increased imports are causing injury to the domestic industry at the 
same time, such injury shall not be attributed  to the increased imports under investigation. 
 
Chapter III 
 
Application of Safeguard Measures 
 
Article 56.  Application.   Safeguard measures shall be applied to the product imported irrespective of 
the country from which it is imported.  
Article 57.  Form.   Safeguard measures may take the following forms: 
 1. Tariff increases.  2. Imposition of tariff quotas. 
 
3. Imposition of quantitative restrictions.  4. Any other measure needed to prevent or repair  the injury or threat of serious injury and 
facilitate adjustment of the domestic industry. 
 
Article 58.  Duration.   Safeguard measures shall have a maximu m duration of four (4) years.  This 
may be extended for a period of six (6) years if it is determined that the measure continues to be 
necessary to prevent or repair the injury or threat of  serious injury and that there is evidence that the 
domestic industry is adjusting.  
Article 59.  Liberalization.   When a safeguard measure is applied for longer than one (1) year, it 
shall be progressively liberalized by re gular periods or intervals during th e period of application.  If a 
safeguard measure is extended, it may not be more  restrictive than it was at the end of the initial 
period and shall continue to be progressively liberalized.   G/ADP/N/1/PAN/2 
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   If the duration of the safeguard measure exceeds th ree (3) years, the Ministry shall review the 
situation not later than at mid-term of the period of application and, if appropriate, shall recommend 
that the Cabinet Council withdraw the measur e 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 circumstan ces alleged to be the cause of the injury, or the 
restructuring plan where compliance with such a plan is established in the final decision, except where 
the non-compliance is not attributable to the domestic industry. 
 
Article 60.  Exception.   Safeguard measures shall not be app lied 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 to tal imports and provided that developing country 
Members of the Organization with less than a thr ee per cent (3%) import share collectively account 
for not more than nine per cent (9%) of total imports of the product concerned. 
 
Chapter IV 
 
Administrative Investigation of Safeguard Measures 
 
Section 1 
 
The Administrative Investigation 
 
Article 61.  Initiation of an administrative investigation.   An administrative investigation with a 
view to applying safeguard measures shall be initiated at the request of a party or ex officio by the 
Ministry of Trade and Industry.  Article 62.  Application by a party for initiation of an administrative investigation.   Where a 
party applies for an administrative investigation, the application shall be drawn up by a competent 
attorney and shall set forth the arguments on whic h the application is based, indicating clearly the 
factual and legal grounds or basis, and shall be accompanied by sufficient evidence of imports that are 
causing or threaten to cause serious injury to a domestic industry and of a causal link.  Article 63.  Authority of procedural rules and practice.   The administrative investigation shall at 
all stages automatically be governed by, inter alia , the principles of promptness, efficiency, publicity, 
impartiality and avoiding excessive formality. 
 Article 64.  Entitlement.   The following are entitled to apply for initiation of an administrative 
investigation:  the domestic industry injured by the imports under investigation, provided that it 
constitutes a major proportion of the domestic production of the product intended for domestic 
consumption;  chambers, unions or  associations belonging to the injured domestic industry that 
account for a major proportion of domestic pr oduction of the product intended for domestic 
consumption.  Article 65.  Application requirements.   Without prejudice to any additional information that may be 
required by regulation, the application sha ll contain the following minimum information: 
 
1. Particulars of the applicant.  2. Detailed description of the impor ted product or good that is the subject of the application, its 
tariff heading and any other distinguishing particulars. G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 G/SG/N/1/PAN/2 
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3. Description and information regard ing the domestic industry concerned. 
 
4. Detailed description of the like or dir ectly competitive product or good of the domestic 
industry and other distinguishing particulars. 
 5. Names and addresses of the importe rs and, if known, the exporters. 
 
6. The percentage of total dom estic production of the product or good, represented by the like or 
directly competitive product or good produced by the applicant for the domestic market. 
 7. Volume and prices of the imports under i nvestigation and their impact on the domestic 
industry affected. 
 
8. Country of origin and of provenance of the imports;  and  9. Analysis, factors, data or documents show ing the serious injury or threat thererof. 
  Any information or data to be submitted with  the application that has to be supplied by a 
government entity may be deemed to have been su bmitted to the Ministry if the applicant shows 
reliable evidence of having completed the formalities to obtain them.  Article 66.  Adjustment plan.   Where the Ministry deems it necessary to the investigation, whether 
initiated ex officio or at the request of a party, it  may require the applicant to submit a restructuring 
plan or a plan to overcome the circumstances alle ged to be the cause of serious injury or threat 
thereof.   During the period of application of the safegua rd measure, the Ministry shall from time to 
time review execution of such plans and/or ascertain their proper implementation.  
 Where applicable, failure by the affected domes tic industry to apply the said plans may entail, 
following an evaluation and recommendation by the Mi nistry, immediate liberalization or suspension 
of a safeguard measure, except where such failure is not attributable to the domestic industry. 
 Article 67.  Procedure.   Upon receiving the application, the Mi nistry shall examine the information it 
contains as well as any other information before it,  in order to ascertain whether initiation of an 
administrative investigation is justified.  The Mini stry shall determine in a reasoned decision whether 
or not to initiate an administrative investigation.   If the application does not meet the requirements set forth in this Decree Law or its Regulations, or if the information submitted is inaccurate or unclear, or if additional information is 
deemed to be necessary, the Ministry shall request th e applicant, within five (5) working days of the 
date of submission of the application, to corre ct or supplement the information within ten 
(10) working days of such notification so that the applicant may adjust the application or submit 
relevant evidence.  If the applicant fails to meet  this requirement within the stated period, the 
application shall be rejected and shelved by a reasoned decision.  A reasonable extension to the 
above-mentioned period may be granted by the Minist ry, either by a reasoned request from a party or 
where circumstances so warrant.   Similarly, the Ministry may reject the application when the information submitted is false or immaterial or where an application is  vexatious, inadmissible or unjustified.  G/ADP/N/1/PAN/2 
 G/SCM/N/1/PAN/2 
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 Once the Ministry is in possession of all the requisite information, it shall have fifteen 
(15) working days within which to assess the mer its of the application and to issue a reasoned 
decision either to initiate or to reject the administrative investigation. 
 Article 68.  Publication of the initiation of an administrative investigation.   Upon issuing a 
decision to initiate an administra tive investigation, the Ministry shall publish a summary of the 
decision in the Gaceta Oficial or in a national newspaper recognized to be widely circulated. 
 
Article 69.  Notification to the public and interested parties.   Upon issuing a decision to initiate an 
administrative investigation, the Ministry shall ha ve ten (10) working days within which to notify 
initiation of the investigation to the public and to known interested parties.  It shall grant the interested 
parties a period of thirty (30) calendar days, starting either from the date of receipt of the notification 
or seven (7) calendar days after the date of its dispat ch, for the interested parties to submit their replies 
or any comments, views and/or documents they deem fit.  Where necessary, a copy of the application 
shall likewise be sent to authorities or bodies specified  in international agreemen ts to which Panama is 
a party.  Where feasible, the Ministry may entertai n requests for extensions from interested parties, 
provided they show just cause.  
 The notification shall contain a copy of the deci sion to initiate the inv estigation, and of the 
application, where the procedure is at a party's request, and any attachments that contain no confidential information, or, in the case of ex offi cio investigations, the relevant documents together 
with a questionnaire detailing the points to wh ich reference should be made in the reply. 
 
 If no reply is submitted within the prescrib ed period, the Ministry shall pursue the 
administrative investigation on the basis of the best information available. 
 Article 70.  Notification to other government entities.   A copy of the application or of the decision 
to initiate the administrative investigation shall be  sent to the Ministry of Agricultural Development, 
where the product or good to be investigated falls within its competence, to  the Comptroller-General 
of the Republic and to the Ministry of the Economy and Finance, so that they may supply relevant 
information, statistics and documenta tion to supplement the evidence. 
  With a view to furthering the investigation,  the Ministry may send at any time to these and 
any other government entities questionnaires and/or  requests for specific information.  The 
questionnaires and/or requests must be answered and/or  completed within thirty (30) calendar days at 
the latest.  
Section 2 
 
Evidence 
 
Article 71.  Evidence.   The Ministry may seek from the intere sted parties any evidence, information 
and data it deems relevant and may use forms for th e purpose.  If an interested party denies access to 
the information sought or fails to provide it in the form and within the time-limit prescribed, or 
significantly impedes the investigation, the Minist ry shall make its recommendation on the basis of 
the best information available. 
  The Ministry may request domestic producers, distributors or traders of the product in question, and customs officials, ag ents, attorneys or consignees of importers, or any other person it 
deems appropriate, to supply inform ation and data available to them. G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 G/SG/N/1/PAN/2 
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Article 72.  Examination of evidence.   The Ministry shall require and examine such evidence as it 
deems necessary and relevant to ascertain the accu racy of the facts alleged, within fifteen 
(15) working days of the date or time-limit set for th e interested parties' replies to the notification.  
The Ministry may extend this period if circumstances so warrant.   To further the proceedings, the Ministry may at  any time request any kind of information, and 
reports and technical parameters, from government entities, which shall be required to supply them 
within thirty (30) calendar days at the latest. 
  Where it deems appropriate, the Ministry may lik ewise request interested parties to supply at 
their own cost, questionnaires, expert reports, opini ons or technical parameters, and order any such 
measure as may contribute to verification of the facts alleged. 
 
Section 3 
 
Hearings and Final Decision 
 
Article 73.  Hearings.  Having completed examination of the ev idence and before deciding to end the 
administrative investigation, the Ministry shall su mmon all interested parties to a hearing for the 
purpose of informing them of, and hearing their views on, the essential facts under consideration which are to serve as a basis for the decision whether or not to apply safeguard measures.  After the hearing, the parties shall have three (3) working days  in which to submit arguments in defence of their 
interests and make their views known. 
 
 Representatives of the Ministry of Agricultu ral Development and the Ministry of the 
Economy and Finance may likewise attend the hearing.  Article 74.  Final decision.   Upon receipt of the above-mentioned submissions, the Ministry shall 
have ten (10) working days in which to i ssue a reasoned decision ending the administrative 
investigation, with a recommendation to the Cabi net Council as to whether or not the safeguard 
measure should be applied to the investigated products.   Where appropriate, the Ministry shall recommend implementation of an adjustment or restructuring plan for the affected domestic industry. 
 
 The decision submitted to the Council Cabi net for consideration shall contain any 
observations, comments or views on the application of  the safeguard measure sent or submitted by the 
Ministry of Agricultural Development and the Minist ry of the Economy and Finance in the context of 
the administrative investigation or specific case.  If no such comments are submitted by the above-
mentioned bodies, this shall be noted in the decision. 
 
Article 75.  Notification to the Cabinet Council.   Once the final decision of the administrative 
investigation has been issued, th e Ministry shall send an authenticated copy of it to the Cabinet 
Council for consideration and a decision.  
Article 76.  Imposition of safeguard measures.   The decision to end the administrative investigation 
shall be sent via the Ministry of Trade and Industry to the Cabinet Council, which, pursuant the authority conferred by Article 200(7) of the Political  Constitution of the Repu blic of Panama, shall 
consider the imposition of the safeguard measures.   G/ADP/N/1/PAN/2 
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  Article 77.  Publication.   A summary of the Cabinet Council's decision shall be published in the 
Gaceta Oficial or in a national newspaper recognized to be widely circulated. 
 
Section 4 
 
Provisional Safeguard Measures 
 
Article 78.  Application.   In administrative investigations initi ated at the request of a party, the 
Ministry may be requested, while the investigation is in progress, to provide  an analysis of the 
imposition of a provisional safeguard measure.   The Ministry may likewise carry out such an analysis for the establishment of the provisional 
measure where the investigation is initiated ex officio. 
 
Article 79.  Requirements.   By a reasoned decision, the Minist ry shall recommend that the Cabinet 
Council adopt provisional safeguard measures when cr itical circumstances arise in which any delay 
would result in injury to the domestic industry that would be difficult to repair, pursuant to a 
preliminary determination of the existence of clear evidence that the increase in imports has caused or 
threatens to cause serious injury. 
 
 The decision recommending that the Cabinet Council apply a provisional measure shall set out the relevant considerations, the supporting evid ence and the period of application or duration 
recommended.  
Article 80.  Duration of the measure.   The duration of a provisional safeguard measure shall not 
exceed two hundred (200) calendar days.  Article 81.  Form of the measure.   Provisional safeguard measures sh all consist of temporary tariff 
increases.  
 Where, having completed the legal procedure for determining whether a definitive safeguard 
measure is to be applied, the Ministry determin es that the increase in imports has not caused or 
threatened to cause serious injury to a domestic i ndustry, the temporary tariff increases imposed by 
means of provisional safeguard measures shall be refunded to the importers. 
 
Article 82.  Application.   Once it has issued a decision recommending application of a provisional 
safeguard measure, the Ministry shall send it to the Cabinet Council, which, in exercise of the 
authority conferred by Article 200(7) of the Political  Constitution, or in accordance with the law, shall 
decide whether or not to impose such a measure.  Article 83.  Publication.   A summary of the provisional safe guard measure adopted by the Cabinet 
Council shall be published in the Gaceta Oficial  or in a national newspape r recognized to be widely 
circulated.  G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 G/SG/N/1/PAN/2 
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  Title IV 
 
The Administrative Investigation 
 
Chapter I 
 
Common Provisions 
 Article 84.  Administrative files.   In the administrative investigati on proceedings referred to in this 
Decree Law, the Ministry shall establish a file, in the framework of which it shall issue the necessary 
administrative orders.   Unless specified otherwise, the orders through which the Ministry acts in the course of 
administrative investigations shall be merely procedural in nature. 
 Article 85.  Requirement for government entities to supply information.   Institutions of 
government entities, particularly the Directorate-Gene ral of Customs, the Comptroller-General of the 
Republic, the Ministry of the Economy and Finance,  the Ministry of Agricultural Development and 
the Ministry of Foreign Affairs, shall be required to  provide the Ministry, within thirty (30) calendar 
days at the latest, with any information that it may request for the purpose of an administrative 
investigation.  Article 86.  Access to the file and confidentially.   The Ministry shall grant interested parties timely 
opportunity to examine all information contained in the file, provided that it is not confidential or 
restricted.  Information that the Ministry deems to  be confidential or restricted shall not be made 
available to any interested party.   Where information is deemed to be confidentia l or restricted, the party to which it belongs 
shall provide a summary thereof with unrestricted  access which shall include sufficient detail to 
permit a reasonable understanding of th e substance of the information.  In exceptional circumstances, 
the parties my indicate that such information is not able to be summarized, explaining why this is so. 
  Persons with authorized access to confidentia l or restricted information may not use it for 
their personal benefit and shall be  under the obligation to take all necessary measures to prevent any 
disclosure thereof.  Infringement of this requireme nt shall be punishable under the appropriate civil 
and penal provisions. 
  The foregoing does not apply to any informati on that the authorities of the Public Prosecutor 
or Judicial Body may require from the Ministry, in the form prescribed by the relevant provisions.  Article 87.  Confidentiality rule.   Public servants or professionals employed in the service of the 
State who, by reason of their office or in the performance of their duties, have access to the file of an 
administrative investigation, shall maintain due discretion and confidentialit y regarding the content 
thereof.   Breach of the confidentiality rule shall be puni shable by dismissal from office in the case of 
public servants, or termination of contract in th e case of professionals in the service of the State, 
without prejudice to any civil and/or criminal liability incurred.  Article 88.  Restrictions.   Public servants or professionals empl oyed in the service of the State who, 
by reason of their office or in the performance of their duties, have access to the file of an  G/ADP/N/1/PAN/2 
 G/SCM/N/1/PAN/2 
 G/SG/N/1/PAN/2 
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  administrative investigation may not work or perform  services for companies directly or indirectly 
linked with the investigation, for at least three (3 ) years after the termination of the investigation. 
 
Article 89.  Notifications.   The notifications referred to in this Decree Law may be transmitted:  
personally, by registered mail, by public display, by publication in the Gaceta Oficial  or a national 
newspaper recognized to be widely circulated, or by any other direct means such as specialized messenger service, or by electronic means.  Notif ications transmitted by any of the foregoing means 
shall take effect on the working day following the day on which they were issued.  The Regulations 
shall establish the formalities and terms for notification. 
 Article 90.  Access to the file.   The Ministry shall grant access to th e file to interested parties and to 
public or private law entities which, pursuant to in ternational treaties or ag reements to which the 
Republic of Panama is a party, may have access to  the information.  Confidential or restricted 
information contained in the file shall be availa ble only to the legal representatives of the party 
supplying it or the party's duly accredited special agents.   Persons with authorized access to confidential information may not use such information for 
their personal benefit and shall be under an obliga tion to take all necessary measures to prevent any 
disclosure thereof.  Infringement of this requi rement shall be punishable under the appropriate 
administrative, civil and/or penal provisions. 
 Article 91.  Evidence and evidentiary procedure.   The interested parties may submit evidence of all 
types other than confessions or material that is cont rary to public order or offensive to morals or 
decency.   
 
 During the investigation period, the Ministry  may at any time agree to the institution, 
repetition or extension of any evidentiary pro cedure considered necessary and conducive to the 
discovery of the truth regarding the facts under investigation.  Article 92.  Verification of information.   The Ministry may verify the information submitted in the 
course of the investigation, subject to prior author ization from the party supplying the information to 
be verified.  For that purpose, the Ministry shall gi ve notice in writing of any searches of the domicile, 
commercial establishment or place where the information is located.   In the course of the administrative investigati on, the Ministry may request parties to provide 
any such information, clarification, further deta ils or documentation as it may deem relevant to the 
proceedings.  Article 93.  Remedies.   Decisions handed down in an administrative investigation are open only to 
appeal, which shall be granted with devolutive effect.  
 In the absence of a response from the competent o fficial within fifteen (15) working days of 
its filing, the appeal shall be deemed to have been  rejected and the administrative remedies exhausted. 
 Article 94.  Circumvention.   The following are deemed to cons titute circumvention of countervailing 
or anti-dumping duties or safeguard measures: 
 
1. Introduction into the national territory of inputs, parts or components for production or 
assembly of a product subject to countervailing or  anti-dumping duties or safeguard measures. 
 G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 G/SG/N/1/PAN/2 
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  2. 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. 
 
3. introduction into the national territory of goods from the same country of origin as the product 
subject to countervailing or anti-dumping duties or safeguard measures that have relatively 
slight differences from the product in question. 
 
4. introduction into the national territory of goods subject to countervailing or anti-dumping 
duties imported at a rate lower than the applicable duty. 
 5. any other action resulting in failure to pay the countervailing or anti-dumping duties or 
safeguard measures. 
 
 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.  
Article 95.  Supplementary provisions.   In the absence of any express provision in this Decree Law 
concerning administrative proceedings in respect of unfair trade practices and safeguard measures, the 
provisions on administrative procedure set forth in Law 38 of 2000 shall apply by default. 
 Article 96.  Entry into force.   Provisional and definitive count ervailing or anti-dumping measures 
and safeguard measures shall apply from the day following their publication in the Gaceta Oficial , 
unless specified otherwise.  
Title V 
 
Final Provisions 
 
Article 97.  Trade agreements and treaties.   Should an international agreement or treaty signed and 
ratified by the Republic of Panama lay down provisi ons that differ from, modify, or enlarge on those 
set forth in this Decree Law, the Ministry shall appl y them in conformity with the other provisions of 
this Decree Law. 
 
Article 98.  Article 103(9) of Law 29 of 1996 is amended to read as follows: 
 
"Article 103.  Functions of the Commission.   The Commission shall have the following 
functions and powers: 
 
 ...  
 
9. Establish coordination mechanisms for c onsumer protection and for the prevention of 
restrictive trade practices, and lay down administrative penalties falling within its competence; 
 
 ..."   G/ADP/N/1/PAN/2 
 G/SCM/N/1/PAN/2 
 G/SG/N/1/PAN/2 
 Page 25 
  
  Article 99.   Article 141(2) of Law 29 of 1996 sh all be amended to read as follows: 
 
"Article 141.  Competence.   Three (3) civil circuit courts are hereby created in the First 
Judicial District of Panama, to be known as the Eighth, Ninth and Tenth courts of the First 
Judicial Circuit of Panama, and one circuit court in Colón.  Additional civil circuit courts are 
created in Coclé, Chiriquí and Los Santos to be known as the Second Court of Coclé, the Fourth Court of Chiriquí and the Second Court of Los Santos, respectively, to hear such cases in their respective judicial districts.  These c ourts shall deal exclusively with the following 
cases: 
  …  
2. Disputes arising from the implementation or interpretation of this Law in respect of 
monopolies and consumer protection; 
  …"  Article 100.  (Transitional).   The Ministry of the Economy and Finance shall make the necessary 
transfers of budgetary items currently used by the Commission for Free Competition and Consumer 
Affairs, in respect of matters competence for whic h is transferred to the Ministry of Trade and 
Industry pursuant to this Decree Law.  Public servants working in these bodies shall likewise be 
transferred.   The Ministry of the Economy and Finance sh all take the necessary steps to allocate the 
budgetary items required by the Ministry of Trad e and Industry for implem entation of this Decree 
Law.  Article 101.   (Transitional).  In the case of judicial proceedings or administrative investigations 
initiated prior to the entry into force of this D ecree Law, the authorities hearing them shall decline 
jurisdiction in favour of the Ministry of Trade and Industry, but substantive matters shall be governed 
by the law in force when proceedings were initia ted.  Notwithstanding the foregoing, judicial or 
administrative proceedings that have reached the decision stage shall be ruled on by the authority 
hearing them at the time of entry into force of th is Decree Law, and shall be governed as to substance 
and procedure by the law in force when they were initiated.  
Article 102.   The Executive Body, through the Ministry of Trade and Industry, shall issue the 
Regulations to this Decree Law and shall adopt  the provisions it deems most suitable for its 
implementation.  Article 103.   This Decree Law repeals Title III, Title IV, Title VII Chapter III and Title VIII 
Chapter III of Law 29 of 1996, as amended by Law 23 of 1997, and amends Articles  103 and 141 of 
Law 29 of 1996, as well as any other pr ovisions that may conflict with it. 
 G/ADP/N/1/PAN/2 
G/SCM/N/1/PAN/2 G/SG/N/1/PAN/2 
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  Article 104.  This Decree Law shall take effect from the date of its promulgation. 
 FOR PUBLICATION AND IMPLEMENTATION 
 
Done at Panama City on 15 February 2006  MARTÍN TORRIJOS ESPINO President of the Republic REYNALDO RIVERA 
Minister of Labour and Labour Development 
 
HÉCTOR B.  ALEMÁN ESTÉVEZ Minister of the Interior and Justice ALEJANDRO FERRER 
Ministry of Trade and Industry  
SAMUEL LEWIS NAVARRO 
Minister of Foreign Affairs BALBINA HERRERA ARAÚZ 
Minister of Housing 
 
MIGUEL ÁNGEL CAÑIZALES Minister of Education  GUILLERMO SALAZAR NICOLAU 
Minister of Agricultural Development  
CARLOS VALLARINO R. 
Minister of Public Works 
 MARÍA ROQUEBERT LEÓN 
Minister of Social Development 
 
CAMILO ALLEYNE Minister of Health RICAURTE VÁSQUEZ MORALES 
Minister of the Economy and Finance 
 
UBALDINO REAL SOLÍS 
Minister of the Presidency and 
General Secretary of the Cabinet Council 
 
__________