The Ministry of Commerce and Industry and the National Customs Authority of Panama are training the public and private sectors on Advance Rulings.
August 15, 2014
On August 11, 12, and 13, 2014, in Panama City, Juan Luis Zúñiga, MSc., Consultant for the company CATRADE CONSULTING GROUP, participated as a facilitator in a Training Workshop on “Proposal for an Advance Ruling System for the Republic of Panama.” The event was aimed at officials from the National Customs Authority and the Ministry of Commerce and Industry (MICI), as well as representatives of the private sector, especially members of the National Union of Customs Brokers of Panama (UNCAP).
The event presented the results of a consultancy project aimed at developing the necessary activities to implement a procedure for receiving applications, processing, and issuing Advance Rulings on Tariff Classification, Customs Valuation, Rules of Origin, among other matters. This was done in order to comply with the international trade commitments assumed by Panama within the framework of its trade agreements with the United States (Trade Promotion Agreement - TPC -), Taiwan, Singapore, Chile, Canada, Peru, and the European Union, as well as the commitments arising from the World Trade Organization (WTO) Trade Facilitation Agreement - Bali Agreement.
This system, once implemented, will provide greater certainty to trade operators, such as private companies, traders, importers, exporters, producers, customs brokers, trade and customs advisors, and customs administrations. It will also ensure the effective and timely implementation of international trade instruments. private sector The following benefits are expected:
- Greater legal certainty, transparency, and predictability when conducting customs operations.
- Possibility of carrying out customs clearance more quickly.
- Reduction of discrepancies, litigation, and disputes with customs authorities.
- Increased efficiency of foreign trade processes.
- Cost reduction and increased savings when conducting foreign trade transactions.
- They ensure compliance within the business organization as part of purchasing or sales planning by obtaining reasoned and binding criteria.
- They guarantee informed compliance with customs authorities by giving trade operators the opportunity to take preventive measures.
Also for the public sector Advance Rulings provide important benefits, such as:
- They provide certainty to merchants and their agents regarding the treatment their merchandise will receive in various areas when passing through customs.
- They generate administrative cost savings associated with litigation and discrepancies, challenges.
- They guarantee the development of a trade facilitation measure that is present in most bilateral and multilateral international trade regulations.
- They support merchants in the processes aimed at ensuring informed compliance with the obligations established in the customs and foreign trade legal system.
- They reduce discrepancies in customs and administrative and judicial processes related to customs matters.
- They increase public-private cooperation and help promote mutual trust between customs authorities and traders.
- They promote the strengthening of coherence, uniformity, and equity in the application of customs legislation.
It is important to highlight the efforts the Republic of Panama is making to position itself at the regional forefront in implementing trade facilitation measures and fulfilling international trade commitments.