US embassy cable - 04PANAMA954

UNCLAS SECTION 01 OF 03 PANAMA 000954 
 
SIPDIS 
 
 
DEPARTMENT FOR NP/RA JULIET SMITH 
 
 
E.O. 12958: N/A 
TAGS: PARM, PREL, KNNP, EWWT, EAIR, PM, LABOR, HUMAN RIGHTS,POLMIL 
SUBJECT: PSI: ANSWERS TO KEY QUESTIONS ON CARGO HANDLING 
 
REF: STATE 55415 
 
 
Per reftel, please see below PSI-related questions and 
answers on Panamanian laws regarding cargo handling. 
 
 
 
 
I.  Shipping/Cargo Manifests 
 
 
-- Are cargo manifests (or similar documentation) required in 
connection with the shipment of goods onboard ships and 
aircraft: 
i.  departing the country; 
ii. entering the country; 
iii.  transiting in the country's territorial sea and/or 
airspace? 
 
 
BY SEA: Cargo manifests are required in all three situations. 
 
 
BY AIR: Cargo manifests are required in all three situations. 
 
 
 
 
-- Are cargo manifests required to be completed by sea and 
air carriers registered within subject country, even if they 
are engaged in trade outside of the country? 
 
 
BY SEA: Cargo manifests are required.  Specifically, when 
cargo is going to a US port, the carrier is required to 
submit a declaration for all cargo onboard to the US 
Department of Homeland Security (DHS) Bureau of 
Investigations and Criminal Enforcement (BICE) no later than 
24 hours prior to the time the cargo is loaded on the 
carrier's vessel in the non-US port. 
 
 
BY AIR: Cargo manifests are required. 
 
 
 
 
-- When completing manifests, what level of detail is 
required in describing cargo being carried, including type 
and quantity? 
 
 
BY SEA: Cargo manifests must include a description of the 
cargo or the 6-digit Harmonized Tariff System (HTS) number 
under which the cargo is classified, weight of the cargo and 
quantity of the cargo (expressed in the lowest external 
packaging unit). 
 
 
BY AIR: Cargo manifests must include name of the 
airline/owner operator, nationality and registration, flight 
number, date, points of departure/arrival, number and type of 
packages, nature of goods, gross weight, and destination of 
master airway bill. 
 
 
 
 
-- What, if any, civil and/or criminal penalties exist in 
connection with the following (and do they allow for seizure 
of cargo as one potential penalty): 
i.  failing to prepare a manifest; 
ii.  failing to properly complete a manifest; 
iii.  misrepresenting items listed on, or fraudulently 
completing, a manifest? 
 
 
BY SEA: Fines may be levied depending on how serious and how 
often the failure to properly reflect cargo on manifests. 
There are no criminal penalties. 
 
 
BY AIR: Fines may be levied depending on how serious and how 
often the failure to properly reflect cargo on manifests. 
There are no criminal penalties. 
 
 
 
 
-- Does the subject country's law permit officials from 
another country, with the consent of the subject country, to 
detain individuals on vessels operating under the subject 
country's flag in international waters, based upon suspected 
violations of (a) the subject country's law?; (b) the other 
country's law? 
 
 
BY SEA: Yes, on a case-by-case basis, the GOP can (and has) 
permitted another country, specifically the USG, to detain 
individuals on vessels operating under the Panamanian flag in 
international waters. 
 
 
 
 
-- In cases where such detentions occur, are there any 
specific requirements concerning how the subject country, or 
the other country, could assume jurisdiction over such 
individuals (e.g., would extradition or similar formal 
transfer process required)? 
 
 
Embassy is currently negotiating a bilateral memorandum of 
understanding (MOU) to define such procedures; however, in 
practice, in the past, Panama's National Maritime Service 
(SMN) authorizes boardings, and its Maritime Authority (AMP) 
authorizes detentions.  The USG has never requested waiver of 
jurisdiction from the Foreign Ministry (MFA). 
 
 
-- What limitations exist in the subject country's criminal 
justice system on the introduction at trial against an 
accused of evidence that has been gathered by officials of 
another country (e.g., situations in which officials of the 
other country would be required to testify or submit 
affidavits in order for such evidence to be admissible)? 
 
 
No limitations exist per se, as allowed under the bilateral 
Mutual Legal Assistance Treaty (MLAT). 
 
 
 
 
II.  Hazardous Cargo Requirements 
-- Is the country implementing and enforcing mandatory 
international standards for cargo handling, stowage, marking, 
placarding, and labeling related to the shipment of dangerous 
goods by sea or air? 
BY SEA: Shippers must provide all information 24 hours prior 
to a vessel's arrival, such as the Container Packing 
Certificate and a Certified Hazardous Materials Shipping 
Paper with container number, name/status, 
company/organization of signatory, place, date, and signature 
on behalf of the packer.  All containers with dangerous goods 
must have placards on lateral, front and back of the 
container, according to hazard type. 
 
 
BY AIR: The shipment of dangerous goods must meet 
International Air Transport Association (IATA) standards. 
 
 
 
 
-- What reporting requirements exist in subject country to 
report hazardous cargo onboard vessels entering subject 
country's ports/airports/territory? 
 
 
BY SEA: All information mentioned above should be provided to 
a vessel's chief mate by the customer.  The chief mate 
presents the same to the port upon entering/departing the 
country or transiting the Panama Canal. 
 
 
BY AIR: In order to handle "dangerous goods," a country is 
required to have a Shipper's Declaration, an IATA license and 
two employees registered to handle such materials.  Materials 
must be labeled according to IATA regulations. 
 
 
 
 
-- What types of cargo are covered by such reporting 
requirements? 
 
 
BY SEA: Most dangerous goods are permitted, except as 
classified under the International Maritime Organization 
(IMO) Inter-Modal Dangerous Goods (IMDG) Code class 2 and, at 
Balboa Port, as classified under the IMO IMDG Code class 1.1, 
1.2 and 1.3. 
 
 
BY AIR: Dangerous goods and restricted items, as classified 
in IATA's directory. 
 
 
 
 
-- What penalties exist for failure to report such cargo when 
entering port/airport/territory (e.g., seizure of the vessel, 
seizure of the cargo, criminal penalties against the ship's 
Master or crew, etc)? 
 
 
BY SEA: Fines may be levied for failure to report hazardous 
cargo.  Seizure of such cargo is permitted if it is not 
properly authorized by Panamanian authorities. 
 
 
BY AIR: Fines may be levied for failure to report hazardous 
cargo.  Seizure of such cargo is permitted if it is not 
properly authorized by Panamanian authorities. 
 
 
 
 
-- What, if any, reporting requirements exist in subject 
country law for vessels transiting the territorial sea, 
airspace, or territory to report hazardous cargo? 
 
 
BY SEA: No reporting requirements exist. 
 
 
BY AIR: No reporting requirements exist. 
 
 
 
 
-- What type of cargo and quantities thereof are covered by 
such reporting requirements? 
 
 
N/A 
 
 
-- What sanctions exist for failure to report such cargo when 
transiting the territorial sea, airspace, or territory (e.g., 
seizure of the vessel, seizure of the cargo, criminal 
penalties against the ship's Master or crew, etc)? 
 
 
N/A 
 
 
-- Can any of the sanctions identified in the questions above 
be applied against the registered owner or operator of the 
vessel, including criminal penalties? 
 
 
N/A 
 
 
WATT