# Panama (PA)

**Capital:** Panama City  
**Currency:** Panamanian Balboa (PAB) (PAB)  
**Population:** 4,202,572 — Older stored figure; source year not documented.  
**Area:** 75,417 km²

> Panama is the central logistics hub of the Americas: the Panama Canal links the Atlantic and Pacific and handles around five percent of world trade. Imports and exports are processed by the National Customs Authority (ANA) and the digital customs system SIGA; the import tax ITBMS is 7 percent. The ports of Balboa (Pacific), Cristobal and MIT (Atlantic) and the Colon Free Zone, the largest free-trade zone in the Americas, make the country a transshipment and re-export hub for Latin America and the Caribbean. Tocumen (PTY) is a leading regional air-cargo hub. The balboa currency is pegged 1:1 to the US dollar, which serves as the main means of payment.

Panama (PA) lies in Central America and connects North and South America, with coasts on both the Pacific and the Caribbean. A presidential republic with a US-dollar-based economy, it is primarily a services and logistics economy. Its centrepiece is the Panama Canal, which links the Atlantic and Pacific and handles around five percent of world trade. Imports and exports are processed by the National Customs Authority (ANA) and the digital customs system SIGA; the import tax ITBMS is 7 percent (10 percent on alcohol and accommodation, 15 percent on tobacco). The container ports of Balboa on the Pacific and Cristobal and the Manzanillo International Terminal on the Atlantic are among the busiest in Latin America. The Colon Free Zone is the largest free-trade zone in the Americas and a re-export hub for the entire region. Tocumen Airport (PTY) is a leading air-cargo and passenger hub. The national currency, the balboa, is pegged 1:1 to the US dollar. This combination makes Panama one of the most important transit and transshipment markets in the Western Hemisphere.

**Top Import Partners:** US, CN, MX, BR, CO

**Top Export Partners:** US, CN, CR, CO, NL

**Top Import Goods:** Mineral oils, Machinery, Vehicles, Electronics, Consumer goods

**Top Export Goods:** Machinery, Bananas, Seafood, Sugar, Ships

**Key Airports:**
- [Tocumen International Airport (PTY)](https://www.freight-academy.com/en/information/airports/tocumen-international-airport-pty)
- [Alonso Valderrama Airport (CTD)](https://www.freight-academy.com/en/information/airports/alonso-valderrama-airport-ctd)
- [Bocas del Toro International Airport (BOC)](https://www.freight-academy.com/en/information/airports/bocas-del-toro-international-airport-boc)
- [Changuinola Captain Manuel Niño International Airport (CHX)](https://www.freight-academy.com/en/information/airports/changuinola-captain-manuel-nino-international-airport-chx)
- [Enrique Adolfo Jimenez Airport (ONX)](https://www.freight-academy.com/en/information/airports/enrique-adolfo-jimenez-airport-onx)
- [Enrique Malek International Airport (DAV)](https://www.freight-academy.com/en/information/airports/enrique-malek-international-airport-dav)
- [Marcos A. Gelabert International Airport (PAC)](https://www.freight-academy.com/en/information/airports/marcos-a-gelabert-international-airport-pac)
- [Ruben Cantu Airport (SYP)](https://www.freight-academy.com/en/information/airports/ruben-cantu-airport-syp)
- [Achutupu Airport (ACU)](https://www.freight-academy.com/en/information/airports/achutupu-airport-acu)
- [Aguadulce Airport](https://www.freight-academy.com/en/information/airports/aguadulce-airport-332)

## Customs & Import

**Import VAT:** ITBMS 7 percent standard rate  
**Customs complexity:** medium  
**Customs system:** Electronic import declaration via SIGA (Sistema Integrado de Gestión Aduanera) of the ANA; tariff query via the ANA's national customs tariff tool.  
**Customs authority:** [Autoridad Nacional de Aduanas (ANA)](https://www.ana.gob.pa)

## Logistics & Risk

**Logistics role:** Global transit hub, Panama Canal and transshipment hub  
**Economic area:** SICA / SIECA (own common external tariff)  
**Logistics risk:** low to medium  
**Dangerous goods relevance:** medium to high  
**Pharma/cold chain:** medium to high

## FAQ

### What is the import tax in Panama?

The ITBMS (Impuesto de Transferencia de Bienes Muebles y Servicios) is Panama's value added tax and has a standard rate of 7 percent. Alcohol and accommodation are subject to 10 percent, tobacco products to 15 percent. Basic foodstuffs, medicines and exports are exempt.

### Which authority handles customs in Panama?

The competent authority is the Autoridad Nacional de Aduanas (ANA). Imports and exports are declared electronically through the SIGA system (Sistema Integrado de Gestión Aduanera). The national customs tariff can be checked through the ANA's online tariff tool.

### Which documents do I need for importing into Panama?

Commonly required are a commercial invoice, packing list, a transport document (bill of lading or air waybill) and the electronic import declaration in SIGA. For preferential trade agreements, a proof of origin is also needed; for certain goods, health or phytosanitary permits may also be required.

### Which free trade agreements does Panama have?

Panama has agreements with, among others, the USA (Tratado de Promoción Comercial), the EU (Central America-EU Association Agreement since 2013), EFTA, Canada, Chile, Peru, Singapore and Mexico. Rules of origin and proofs depend on the respective agreement.

### What role does the Panama Canal play in logistics?

The Panama Canal connects the Atlantic and the Pacific and handles around five percent of world trade. In 2026, around 38 ships are again transiting per day. In dry years, low water levels in Gatun Lake can lead to draft restrictions that limit cargo capacity.

### What is the Colón Free Zone?

The Colón Free Zone on the Atlantic side is the largest free trade zone in the Americas and the second largest in the world. Around 2'500 companies import and re-export goods from there to Latin America and the Caribbean, without local import duties on transit goods.

### What currency is used in Panama?

The official currency is the Balboa (PAB), which is pegged 1:1 to the US dollar. In everyday life and trade, the US dollar is predominantly used as legal tender; there are no currency controls.

## Sources & Last Verified

- [https://www.ana.gob.pa](https://www.ana.gob.pa)
- [https://dgi.mef.gob.pa](https://dgi.mef.gob.pa)
- [https://taxsummaries.pwc.com/panama/corporate/other-taxes](https://taxsummaries.pwc.com/panama/corporate/other-taxes)
- [https://aranceles.ana.gob.pa/](https://aranceles.ana.gob.pa/)
- [https://www.inec.gob.pa/](https://www.inec.gob.pa/)
- [https://mici.gob.pa/onci-acuerdos-comerciales-regionales/](https://mici.gob.pa/onci-acuerdos-comerciales-regionales/)
- [https://pancanal.com/en/](https://pancanal.com/en/)

*Last verified: 2026-06-27*

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