With the advance of technology development, nowadays we have new products with specifications and functionalities never seen before and with an accelerated diversification that often bring us doubts, confusion or dichotomy in terms of tariff classification of a product.

Additionally, in the world of international trade there are a number of Free Trade Agreements, which, as we have discussed in previous blogs, includes the issue of determining origin.

You may wonder: How can I be sure that my product will not have any objection from the Customs Authority when entering the country? How can I make sure that I am paying the correct duty and that the declared origin will be accepted?

In this sense, the legislation has taken this phenomenon into account, either because it is a totally new product or because it is a product in which there are doubts about the tariff classification or because it is a matter of origin.

Resolution # 466 of the National Customs Authority, Official Gazette No.27693 of Monday, January 5, 2015, regulates the issuance of Advance Rulings, born as a commitment acquired under Panama’s accession to the Economic Integration Subsystem of the Central American Integration System, which in its RECAUCA regulations, establishes this concept in Article 291 and subsequent articles as a mechanism of prior act authorized by the Customs Authority, which provides legal certainty by being a binding Resolution, which means that it is mandatory.

Through this mechanism, the taxpayer may request Customs to issue a legal opinion with respect to the following matters: 

1. Preferential origin;
2. Tariff classification;
3. Application of criteria on customs valuation, for a particular case,
4. Application of drawback, suspension or other deferral of customs duties;
5. On the eligibility for duty-free treatment of a merchandise reimported to the territory of Panama after having been exported temporarily for its transformation, processing, or repair (Re-imported Goods after Repair or Alteration);
6. Marking of country of origin;
7. Application of quotas; or
8. Other matters that the National Customs Authority may decide to incorporate.
9. Some exceptions apply.

Some exceptions apply.

If you need more information or are interested in requesting an Advance Ruling, please do not hesitate to contact us.

In Logistics & Customs Services we are specialists in everything related to import and export procedures and we provide personalized legal advice on international trade matters.