Bill 706.

Summary.

The bill establishes the Darién Special Economic Zone on land in the Jaqué region, Chepigana District, Darién Province, as delimited in an annex. Its framework seeks to attract tourism, fishing, aquaculture, agroindustry, and logistics activities. It defines the developer, operator, registered companies, and National Fiscal Territory, and creates the Darién Special Economic Zone Agency as an autonomous entity subject to the guidance and oversight of the Executive Branch through the Ministry of the Presidency (Ministerio de la Presidencia). The Agency administers the Zone’s property and activities, maintains the business registry, approves land-use plans, charges for its services, and imposes sanctions.

Its assets and revenue include transferred property, its own income, donations, and budget allocations for no more than 5 years or until it becomes self-financing. The Agency submits annual budgets and manages a 3-year reserve; it distributes the remaining surplus among the Development Trust Fund (Fondo Fiduciario para el Desarrollo), workforce training in Darién, and the Darién Special Economic Zone Educational Assistance Fund (Fondo para la Asistencia Educativa de la Zona Económica Especial del Darién). The bill provides tax exemptions for the Agency, subject to exceptions, oversight by the Office of the Comptroller General of the Republic (Contraloría General de la República), an annual external audit, and collection through administrative enforcement proceedings. The Agency may grant concessions or lease property for up to 40 years, renewable for up to another 40 years, and sell up to 25% through public tender.

The organization comprises a Board of Directors, an Administrator, a Deputy Administrator, and specialized departments. The Board approves policies, budgets, plans, and certain contracts; the Administrator represents the Agency, manages registrations, and implements its decisions. The departments handle labor, immigration, and social security matters; customs and tax controls; building permits and environmental matters; and investor applications. Officials from the Ministry of Labor and Workforce Development (Ministerio de Trabajo y Desarrollo Laboral), the National Directorate of Immigration (Dirección Nacional de Migración), the Social Security Fund (Caja de Seguro Social), the General Directorate of Customs (Dirección General de Aduanas), and the General Directorate of Revenue (Dirección General de Ingresos) participate. The Agency may contract developers or operators through an international selection process; their contracts specify areas, rights, investments, implementation deadlines, guarantees, and maintenance and promotion obligations.

Panamanian or foreign persons apply for registration with the required identity, activity, employment, and investment information. Registration confers Zone Company status and access to incentives, subject to the stated exception for activities that could affect certain state contracts. Companies must begin operations or investments within 1 year, maintain accounting and customs records, report changes within 30 calendar days, and submit quarterly reports. Noncompliance may result in a warning, fine, suspension, or cancellation of registration.

The proposed tax framework provides exemptions for activities and goods in the Zone, subject to the rules and filing requirements set out in the text. The customs framework permits goods to be brought in, transferred, and exported; their entry into the National Fiscal Territory requires assessment and payment of the applicable taxes. An automated system records movements and enables inventory audits. The Labor Code applies, with special rules on overtime, rest periods, worker mobility, termination due to market fluctuations, and hiring foreign personnel. A training center and an educational fund are established. The bill provides visas for foreign workers and investors, as well as a personal import allowance.

The Agency would approve land-use planning and grant infrastructure concessions in coordination with the competent authorities. Environmental studies, permits, and standards remain applicable, with particular attention to the Gulf of San Miguel, and the bill provides for the transfer of property in the Zone, including Jaqué airport and pier. The Executive Branch would issue implementing regulations within 6 months, and the law would take effect upon promulgation. Given its powers and activities, the bill also concerns the Ministry of Environment (Ministerio de Ambiente), the Ministry of Economy and Finance (Ministerio de Economía y Finanzas), the Jaqué and Bahía Piña airports, and the tourism, fishing, aquaculture, agroindustry, and logistics sectors.