The U.S.-Panama Trade Promotion Agreement is a bilateral free trade agreement implemented by Pub. L. 112-43 and entered into force October 31, 2012. Tariffs on approximately 87% of U.S. industrial and consumer exports to Panama were eliminated immediately, with the remainder phasing out over 10 years and certain agricultural products over up to 17 years.
Origin rules. Panama TPA uses product-specific rules in Annex 4.1 combining tariff shift and regional value content tests. RVC build-up is 35%; build-down is 45%. A 10% de minimis tolerance applies (lower for textiles).
Apparel: yarn-forward. Panamanian-origin apparel must meet a yarn-forward rule. Limited single-transformation exceptions apply for certain knit-to-shape garments and brassieres.
Tax information exchange. The Panama TPA was paired with a separate Tax Information Exchange Agreement (TIEA) signed November 30, 2010 — a precondition for Congressional approval given Panama's prior reputation as a tax haven.
Certification. No prescribed form. The importer's claim is supported by a certification from the importer, exporter, or producer with the required data elements. Records retained for five years.
Claims. Use the "PA" Special Program Indicator on CBP Form 7501. Post-entry claims under 19 U.S.C. § 1520(d) within one year of importation.