Panama Customs Management Rules and Regulations

Panama sets quotas or tariffs on imported goods to protect its domestic industries from shocks. Except for products exempted by special laws or contracts, all other products are subject to import tariffs. Since joining the WTO in 1997, Panama has significantly reduced quantitative restrictions and other trade barriers on imports. Except for some agricultural products, tariffs have been reduced to no more than 15%, and the average import tariff rate is about 12%, which is the lowest in the region.

For some products that have an impact on the local economy, such as rice, sugar, beef, poultry, pork, milk and onions, protective import tariffs are also imposed. Therefore, the import tax rate of the product should be checked before importing. Except for food, medicine and some special products, all imported goods are subject to a 7% value-added tax (ITBMS).

Panama adopts the Harmonized Classification System (HS) to compile import commodity tariffs and implements a single tariff, levying ad valorem taxes on imported goods at the CIF price (with reference to historical prices in special cases). Panama Customs will use 12-digit customs codes from January 1, 2020.