Bill 356.

Summary.

The bill proposes the gradual reduction and replacement of single-use containers, packaging, and cutlery made wholly or partly of expanded polystyrene (EPS) and intended to come into contact with food or beverages. It adopts principles of sustainable development, prevention and precaution, environmental non-regression, circular economy, extended producer responsibility, technological neutrality, and nondiscrimination in trade. It defines EPS, covered products, preferred alternatives, producers, and micro, small, and medium-sized enterprises (MSMEs). It would apply to persons manufacturing, importing, distributing, or marketing covered products within Panama. It excludes medical and pharmaceutical cold chains, construction materials, medical products, other industrial uses unrelated to food, and exports neither marketed nor used in Panama.

For each producer, it sets a minimum 30% reduction in sales volume of food-contact EPS products within 12 months, measured against the moving average of the preceding 12 months; a minimum 60% reduction within 24 months; and, within 36 months, a prohibition on manufacturing and importing them for the domestic market, subject to exemptions. Starting 6 months after entry into force, it prohibits their purchase with public funds. It allows exemptions by reasoned decision for a maximum of 18 months without extension when no technically viable alternative exists and a Transition Plan is submitted. Exemptions would appear in an online register. After 9 months, covered products would have to display their material composition and post-consumer management route, and producers would file an annual declaration of volumes placed on the market.

Producers would organize and finance systems for prevention, ecodesign, separate collection, recycling, consumer information, and audited annual reporting. They could establish nonprofit Integrated Management Systems with annual targets and technical and financial support for MSMEs. Extended producer responsibility contributions would vary with environmental performance. A Circular Transition Fund would cofinance MSME conversion, reusable tableware and return logistics, pilot projects, and worker training, using budget allocations, producer contributions, international cooperation, and fines. State entities would prioritize reusable products and, where these are not feasible, certified alternatives under standardized procurement specifications.

The Ministry of Environment (Ministerio de Ambiente) would lead implementation, with the Consumer Protection and Competition Defense Authority (ACODECO) overseeing markets and labeling, the National Customs Authority (Autoridad Nacional de Aduanas) controlling imports, and the Ministry of Health (Ministerio de Salud) addressing food safety. The bill would create a Single Producer Register and Digital Service Portal. Minor, serious, and very serious violations could carry fines of up to 5,000 B/., 2%, or 4% of the relevant annual turnover; very serious or repeat violations could also lead to temporary closure for up to 15 days. Market withdrawal and corrective measures are provided for. After 24 months, customs clearance would require certification or an exemption. Application would observe nondiscrimination and the exceptions in Article XX of GA II. The Executive Branch (Órgano Ejecutivo) would issue regulations within 6 months of promulgation, and the Ministry of Environment would submit an evaluation report to the Legislative Branch (Órgano Legislativo) after 24 months of operation. Manufacturers, importers, retailers, restaurants, canteens, and MSMEs could be affected.