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U.S. – Panama Trade Promotion Agreement
In effect as of October 31, 2012.

U.S. – Panama Trade Promotion Agreement

Upon the adoption of the agreement, over 87 percent of U.S. industrial goods exports to Panama became duty-free including information technology equipment, agricultural and construction equipment, aircraft and parts, medical and scientific equipment, environmental products, pharmaceuticals, fertilizers, and agro-chemicals.

 

Rules of Origin

For goods that are not wholly obtained, you must meet the product’s rule of origin, usually through Tariff Shift or Regional Value Content. Learn more about how to Read and Apply FTA Rules of Origin. The rules of origin may be found in the final text of the FTA. Occasionally, a particular rule of origin may be revised. For the most updated version of the ROOs consult the Harmonized Tariff Schedule of the United States, General Notes — General Note 35.                                                                                                                                                                                                                                                                                                                                                                                   
In addition to the above rules of origin, there may be other ways to qualify your product:  

  • Accumulation may allow the producer to reduce the value of the non-originating materials used in the production of the good.  
  • De Minimis allows the exporter to disregard a very small percentage of non-originating materials the do no meet a tariff shift rule.
  • Direct Shipment are goods which must be shipped directly from one FTA party to another FTA party.
  • Fungible Goods and Materials refers to goods or materials (components) that are interchangeable for commercial purposes and whose properties are essentially identical.
  • Indirect Materials are goods used in the production, testing or inspection of a good but not physically incorporated into the good.

Claiming/Documenting Origin

No specific certificate is required for the U.S. – Panama TPA.  You may be requested by the importer or the Panama Customs Service to provide information to support a claim of preferential treatment.  More information on what to include can be found in Free Trade Agreements Certificates of Origin.

Key Links/Resources