Summary.
The bill establishes a framework for adjusting tariffs on panela imported into the Republic of Panama. Its stated purpose is to promote domestic production, protect local producers and ensure the quality of the product offered in the domestic market. For purposes of applying its provisions, it defines smuggling as bringing goods into or taking them out of customs territory while avoiding customs intervention or payment of applicable charges. The definition also covers circumstances involving special customs regimes and prohibited goods. The bill further defines molasses, sugarcane syrup and panela, also called dulce or raspadura, by reference to their origin and production.
The tariff increase covers five categories of sugarcane products. For unrefined panela, identified by tariff code 1702.90.10, it sets an import tariff of 75% of customs value; for refined panela, identified by code 1702.90.20, it sets a tariff of 175% of customs value. It sets 75% of customs value for sugarcane syrup, edible molasses and the other categories of sugarcane molasses listed. The National Tariff Commission (Comisión Nacional de Aranceles) would review the tariffs on panela and sugarcane derivatives annually, with a view to adjusting them in light of market conditions and the needs of the domestic production sector.
The bill exempts imports of panela intended for humanitarian assistance and emergencies from the tariff increase, subject to prior authorization by the Ministry of Commerce and Industries (Ministerio de Comercio e Industrias). Imports of panela under international treaties signed and ratified by Panama would instead be governed by the terms of those treaties. The bill also directs the government to implement subsidy and technical support programs for domestic panela producers to increase their competitiveness and production capacity. It further calls for research and development projects in the panela sector to improve production processes and product quality.
Regarding enforcement, smuggling of panela and sugarcane derivatives would be punished under the Criminal Code (Código Penal) of the Republic of Panama. The bill provides that it would enter into force on the first day of the month following publication in the Official Gazette. From that effective date, importing companies would have a six (6) month adjustment period to bring their operations into line with the new provisions. The Ministry of Commerce and Industries would issue the guidelines and rules needed to implement and administer the new tariff rates.
Through the responsibilities assigned to them, the bill concerns the Ministry of Commerce and Industries and the National Tariff Commission. It would also affect or interest domestic panela producers, importing companies, participants in the sugarcane syrup and molasses trade, and organizations importing panela for humanitarian assistance or emergencies.
What it proposes.
- Import tariffs on panela and sugarcane derivatives.
- Annual review of tariff rates.
- Tariff exceptions and support for domestic production.
Who it would affect.
- Companies importing panela and sugarcane derivatives.
- Domestic panela producers.
- Importers of panela for humanitarian assistance or emergencies.
- Authorities responsible for reviewing and implementing tariffs.
Key points.
- Defines smuggling, molasses, sugarcane syrup and panela or raspadura for purposes of the bill.Art. 2
- Sets tariffs of 75% of customs value for unrefined panela, sugarcane syrup and the listed molasses categories, and 175% for refined panela.Art. 3
- Assigns the National Tariff Commission an annual review of tariffs on panela and sugarcane derivatives.Art. 4
- Exempts authorized humanitarian or emergency imports from the increase and subjects treaty-covered imports to the terms of the applicable treaties.Art. 5
- Provides for subsidy and technical support programs for domestic producers and promotes sector research and development projects.Art. 6
- Subjects smuggling of panela and sugarcane derivatives to penalties under the Criminal Code of the Republic of Panama.Art. 7
- Provides for commencement following publication in the Official Gazette, a six (6) month adjustment period and implementation guidelines.Arts. 8-9