Bill 367.

Summary.

The bill establishes prevention, control, and oversight measures for operations involving high fructose corn syrup. Its scope covers production, manufacture, preparation, refining, industrial processing, distribution, transformation, extraction, dilution, storage, marketing, transport, transshipment, importation, exportation, re-exportation, customs transit, disposal, packaging, and use, together with related domestic or international transactions. Its obligations would apply to individuals and legal entities carrying out those activities within the national territory, whether regularly or occasionally and whether for payment or without charge.

The text defines diversion, distribution, labels, exportation, importation, mixtures, and operators. It also defines high fructose corn syrup, using the abbreviations JMAF and HFCS, and the activities of preparation, manufacture, or production. For customs operations, it specifies the meanings of customs transit and transshipment. An operator is an individual or legal entity registered with the competent authority to perform a regulated operation, including one involving lawful mixtures subject to control.

The bill prohibits the importation, exportation, re-exportation, transit, and other customs operations of products whose labels identify high fructose corn syrup, including in free zones and ports. It also requires that identification system to be used in statistical records. Those marketing sugar-sweetened beverages containing the syrup would have to keep a complete, accurate, and current inventory of each beverage for a period of no less than one year, during which they could distribute stock held in storage. The Republic of Panama (República de Panamá) would reserve the right to detain such beverages in transit through its territory after notifying the country of final destination. The text further requires their removal from the domestic market within a period not exceeding (1) one year after promulgation.

Any person could report violations to the competent authorities. The Ministry of Health (Ministerio de Salud) would impose sanctions under the Health Code (código sanitario). The bill requires substitution of high fructose corn syrup with natural sweeteners, including honey, agave nectar, cane syrup, maple syrup, brown rice syrup, cane honey, light molasses, and date honey. Failure to comply within the stipulated period with a sanction would result in suspension of the operating permit or license issued by the Ministry of Commerce and Industries (ministerio de comercio e industrias); that ministry could order its permanent cancellation on its own initiative if the suspension lasts six months. Every sugar-sweetened beverage marketed in the national territory would have to state on its label the type of sugar or sweetener used. Compliance would be mandatory, agreements would not be admitted, and the proposed law would take effect on the day following its promulgation.

By subject matter, the bill concerns the Ministry of Health, customs authorities, and the Ministry of Commerce and Industries. Its provisions could interest or affect producers, importers, exporters, carriers, distributors, and retailers of sugar-sweetened beverages, as well as operators in free zones and ports.