Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 4/17/2016
The price structure for imported goods in Panama depends on the level of competition.  The costs of transportation and import duties vary from item to item.  Local prices can be higher or lower than world average depending on local competitive conditions.  For the sake of illustration, the calculation below demonstrates average costs added to a product before it reaches the consumer.  Import duties from non-FTA countries average 10% over cost, while insurance, and freight (CIF) value and wholesale and retail markups are about 25% each.

Average Pricing Schedule                                             
  • CIF Panama                           $100.00
  • Import Duty (+10%)                +10.00
  • Total Landed Cost                   110.00
  • Wholesale Price (+25%)         138.00
  • Retail Price (+25%)                $172.00
Note: A 7% value-added tax on CIF value plus the import duty is assessed at the time of customs liquidation.  Since this value-added tax is payable on all goods, domestic and imported and is passed through to the consumer, it is not included in this calculation.
 
Note that goods made in the U.S. qualify for preferential treatment under the U.S. – Panama Trade Promotion Agreement (TPA).  For 87% of U.S.-made goods, there are no longer any duties.  For a significant percentage of the remaining goods, including agriculture, there is a sliding scale for reduced duties over time.  As the TPA recently went into effect in October 2012, we believe that Panamanian buyers are particularly interested in carrying more U.S. brands.

For more information on whether or not your goods qualify for preferential treatment under the TPA, please visit our website at http://export.gov/panama/u.s.-panamafreetradeagreement.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.