Delays in Customs Procedures, Followed by Prohibited Importation of Cosmetics, Toiletries, and Medicines

[Bonnie]

On 8/6/2017 at 5:38 PM, Bob said:

After receiving three written requests from you, has the embassy not even replied at all?  Do you think a phone call might help?

Perhaps someone who is not a warden can obtain some answers as to why such a clearly stated comuncado is being misadministered, if that is indeed the case.  The comunicado has only one operative sentence,  and that is the one prohibiting importation of cosmetics for personal use.  Apparently that is the only change being made by this comunicado to the way things have been working.  Even the opening sentence of the comunicado states that it relates  to repeated requests to bring cosmetic products  into the country.

How did the subject of the law (or regulation) about prescription drugs come up back in June?  The comunicado related to this thread is dated August 1, 2017.   Have there been other comunicados on the subject?  If not, what seems to be the basis for any change in delivery of medicines or supplements?  I see no mention of supplements in the quoted law sections.  The  usual term for them is "suplementos de salud."  "Medicamentos" does not have the same meaning.

If there has been no other comunicado in this subject area, then what triggered any recent changes in the administration of the requirerments for importing medicines for personal  use,  and what accounts  for any changes in regulations for importing supplements?  The TeleMetro artice recenty posted by Keith Woolford also has no mention of supplements.  " A statement by the Ministry of Health pointed out that all cosmetic products, medicated cosmetics, cleaning products, personal hygiene, disinfectants, or antiseptics that enter the country under the category of "personal use", must be provided with Sanitary Registration for import, distribution and marketing in Panama."   For several months there has been a flat $2.00 additional customs charge for supplements.

Bob, if you would take the time to read the entire thread, you will see copies of my emails to the embassy and you will see that there was an initial response back in June indicating that  the issue merited an embassy message and that they would pursue it. No, I did not telephone. We are encouraged to telephone only in the event of emergencies. Also, telephone responses are limited to only a few hours a day.

Can you think of someone other than a warden who might be successful where I have failed? I can work only through the embassy, but if you know someone who is able to deal directly with the government, I invite you to pursue that course. I generally have quick response from the Citizen Services Unit, so this is an anomaly. There has been a changeover in the head of ACS which may be contributing to the problem. Sometimes, as I wrote earlier, the embassy has a difficult time obtaining answers from the Panamanian government.

We will have to agree to disagree on the other points made in your second paragraph. I remain of the view that the Comunicado is more than simply a notification that cosmetics no longer can be imported because it specifies, for the first time in writing, the exceptions to the drugs prohibition.

As evidenced by prior posts in this thread, which I encourage you to read, the subject first arose in June when Velkys Munoz of MBE asked me to drop in to discuss the matter. She said that directives to MBE offices throughout the country were to require certain paperwork for the importation of drugs, supplements, and cosmetics. She was concerned that this negatively impacted most of her clientele, and she asked for my help in getting the word out ahead of time and seeking clarification via the U.S. Embassy. That gave rise to my first email to the embassy, a response from the head of ACS that she too felt it merited looking into, and my posting these exchanges on CL. The head of ACS  then left on maternity leave. Two followup emails to her replacement have gone unanswered. This is all outlined here on CL on this very thread.

As to why the change--first to require paperwork and then to prohibit altogether the receipt of cosmetics--that is the issue. Why, suddenly, are cosmetics prohibited? Why are supplements treated in the same manner as drugs? What is behind any of this? The law apparently has been on the books since 2001, so why wait until now to enforce it? That is what I am seeking answers to. I hope to hear from the embassy tomorrow when personnel return from the weekend. The last message I sent on Friday was stronger than the previous two.

[Bob]

Bonnie:

Thanks for the thorough summary.

Other than just directives (which I assume must have been from MBE), did Velkys have any copies of actual government orders or regulations?  Based on just the August 1 comunicado, I am  fully confident that it addresses only the subject of cosmetics.   I also know that health supplements are not mentioned in the sections of the law  quoted in the comunicado.

As for alternative inquiries, maybe our diputada could ask for clarification.  A non-warden could handle something like  that to keep you from being involved.

'Any idea how any of this relates to the Free Trade Agreement?  It was alleged to have the effect of removing tariffs from around 87% of imports from the US within a couple of years of its signing in October 2012.  The official US government site, Export.gov,  says this: 

Tariffs have dropped to 0% for 87% of U.S. Exports to Panama. Panama’s tariffs are already relatively low – an average of 7% for industrial goods, around 15% for agricultural products regardless of where the products are made.  But a 0% percent tariff is a competitive advantage for U.S.-made goods.  And U.S. products and services are already very competitive, with some 30% market share of Panama’s imports.

Are we so unlucky as to bring in a lot of stuff that falls into the 13% that has import  tariffs or other restrictions?  Do you think the embassy could explain this oddity?

[Bonnie]

To my knowledge, Velkys had no directives from the government, only from MBE. I doubt that the diputada has any interest in helping expats, who cannot vote. I imagine she has enough to do otherwise. Anyone is free to ask her, though.

 I have no thoughts about whether or how this relates to the Fair Trade Agreement. At this point I am just hoping to get some clarification from the embassy to pass on. U.S. citizens can, on their own, write or call the embassy with questions. They are not obliged to go through the warden.

[Uncle Doug]

Best I can tell, the US Embassy in Panama is less helpful than the worst Department of Motor Vehicles any American has ever encountered in their lives.  Even the IRS doesn't demand a Cashiers Check from me when it rips me off. The US Embassy doesn't accept US currency for payments. Weird, huh?

For the embassy to show some genuine interest in assisting Americans living here by helping  to clarify this issue would go beyond what they are required to do by law. Nobody working there has any incentive to be helpful. Expats have no political clout at all.  We can beg. We can say please and thank you. Maybe that might help a little on some occasions.

Without a directive coming from the State Department in Washington DC, I strongly doubt our embassy will lift a finger. After all, they can have all their cosmetics, drugs, etc., delivered by Diplomatic Pouch which is immune from Panamanian inspection.

Put me in the "not expecting help from the embassy on this one" camp.

[Bonnie]

8 hours ago, Uncle Doug said:

Best I can tell, the US Embassy in Panama is less helpful than the worst Department of Motor Vehicles any American has ever encountered in their lives.  Even the IRS doesn't demand a Cashiers Check from me when it rips me off. The US Embassy doesn't accept US currency for payments. Weird, huh?

For the embassy to show some genuine interest in assisting Americans living here by helping  to clarify this issue would go beyond what they are required to do by law. Nobody working there has any incentive to be helpful. Expats have no political clout at all.  We can beg. We can say please and thank you. Maybe that might help a little on some occasions.

Without a directive coming from the State Department in Washington DC, I strongly doubt our embassy will lift a finger. After all, they can have all their cosmetics, drugs, etc., delivered by Diplomatic Pouch which is immune from Panamanian inspection.

Put me in the "not expecting help from the embassy on this one" camp.

 

For the record, their dubious rationale for not accepting cash--at least during local visits--is security concerns. I suppose this means that they feel vulnerable traipsing around the countryside with cash in their pockets. I can think of a number of ways this concern could be addressed short of requiring U.S. citizens--the clients in this case--to incur the expense and inconvenience of obtaining a cashier's check. Moreover, because of bank requirements, the check must be made out ONLY to "U.S. Embassy Panama".  Any variation of this, however slight, results in having to return to the banks, canceling the original check, and purchasing a new one.

Does anyone know if the embassy accepts only cashier's checks at the office in Panama City, too? (If so, I find this indefensible as the building is guarded around the clock.)

In the embassy's defense, because of diplomatic concerns, embassies have to exercise caution and restraint when interpreting the laws of another country. Even a toe over the line could be seen as interference. The embassy exercised extreme restraint in responding to questions about the new immigration regulations, for example. However, one of the principal responsibilities of an embassy is the security of its citizens abroad. My position is that obstacles to receiving drugs which may be necessary for health jeopardizes the well-being, and therefore security, of U.S. citizens here in Panama. It is my hope that the embassy will be more proactive on this issue.

Edited August 7, 2017 by Bonnie

[Bonnie]

I received the following email from the embassy at 8:07 this morning.

Ms. Williams,

Sorry for the delay on this. We are working on this issue, I can assure you. We’ll try to get back to you as soon as possible.

 Thomas Hayes

Vice Consul

American Citizens Services/Federal Benefits

Unidad de Asistencia a Ciudadanos Estadounidenses/Beneficios Federales

Consular Section / Sección Consular                  

U.S. Embassy Panama / Embajada de los Estados Unidos de América en Panamá

e-mail: Panama-ACS@state.gov  Tel: (507) 317-5000; Fax: (507) 317-5303 

https://pa.usembassy.gov

[Bonnie]

On 8/6/2017 at 8:39 PM, Bob said:

Bonnie:

Thanks for the thorough summary.

Other than just directives (which I assume must have been from MBE), did Velkys have any copies of actual government orders or regulations?  Based on just the August 1 comunicado, I am  fully confident that it addresses only the subject of cosmetics.   I also know that health supplements are not mentioned in the sections of the law  quoted in the comunicado.

As for alternative inquiries, maybe our diputada could ask for clarification.  A non-warden could handle something like  that to keep you from being involved.

'Any idea how any of this relates to the Free Trade Agreement?  It was alleged to have the effect of removing tariffs from around 87% of imports from the US within a couple of years of its signing in October 2012.  The official US government site, Export.gov,  says this: 

Tariffs have dropped to 0% for 87% of U.S. Exports to Panama. Panama’s tariffs are already relatively low – an average of 7% for industrial goods, around 15% for agricultural products regardless of where the products are made.  But a 0% percent tariff is a competitive advantage for U.S.-made goods.  And U.S. products and services are already very competitive, with some 30% market share of Panama’s imports.

Are we so unlucky as to bring in a lot of stuff that falls into the 13% that has import  tariffs or other restrictions?  Do you think the embassy could explain this oddity?

Bob, I became intrigued after the fact with your point about the Free Trade Agreement. The U.S. government provides the following explanation for those who, like me, know little or nothing about it:

U.S.- Panama Trade Promotion Agreement

The United States—Panama Trade Promotion Agreement (TPA) entered into force on October 31, 2012.  The TPA is a comprehensive free trade agreement that provides elimination of tariffs and removes barriers to U.S. services, including financial services.  It also includes important disciplines relating to customs administration and trade facilitation, technical barriers to trade, government procurement, investment, telecommunications, electronics commerce, intellectual property rights, and labor and environmental protection.

More information on the Panama TPA, for those who want to learn more, can be found here: https://ustr.gov/trade-agreements/free-trade-agreements/panama-tpa/final-text. In my cursory read I see no specific mention of drugs or medical supplies, so I assume they either are included in one of the broader topics or do not fall within the terms of the agreement, i.e., are within the 13% that you mention.

If free trade issues are involved in this drug import debacle, it could go a long way in explaining why the embassy is taking so long to respond. There could be a lot of negotiating going on. Thanks for calling our attention to this.

[Bonnie]

This was received today by the customers of Mailboxes, etc:

COMUNICADO IMPORTANTE View this email in your browser

Estimados clientes:   Les informamos formalmente que el 2 de agosto fuimos notificados sin previo aviso, que a partir del 1 de agosto de 2017, la importación de cosméticos para consumo personal estaba prohibida al país, tal como indica el comunicado adjunto emitido por la Lic. Lisbeth Tristan de Brea, Directora Nacional de Farmacia y Drogas.  Cuando hablan de “cosméticos de uso personal” se refieren a cremas, perfumes, pasta de dientes, champú, maquillajes, entre otros.   Intentamos hasta el viernes conseguir una solución con relación a los pedidos ya ordenados antes de esta fecha, pero no ha sido posible.  Esperamos esta semana poder brindarles una respuesta y estamos trabajando arduamente en lograr una reconsideración a esta medida tan drástica y que puedan continuar recibiendo estos productos para consumo personal.  Esta medida no solo afecta a los clientes de Mail Boxes Etc sino a todas las personas que importan cosméticos de uso personal a través de alguna compañía de Courier u otra similar de forma legal al país.   Les pedimos disculpas por esta situación la cual es totalmente ajena a nuestra voluntad y los mantendremos informados.  Les agradecemos manifestar el descontento por esta situación para que juntos podamos encontrar una solución favorable y que puedan continuar recibiendo sus cosméticos de uso personal sin ningún inconveniente.     Atentamente,   Mail Boxes Etc     English Below:   Dear Customers:   We formally inform you that on August 2nd we were notified without previous notice, that since August 1st, 2017, the import of cosmetics for personal use is fordibben in Panama, according to the attached communication by Lic. Lisbeth Tristan de Brea, National Director of Pharmacy and Drugs.  When they say cosmetics for personal use, they refer to body lotions, perfumes, tooth paste, shampoo, makeup, among others.   We tried until Friday to provide you with and answer for all the previous orders before this date, but it has not been possible.  We hope this week we can provide you an answer and we are working nonstop until they reconsider this drastic measure and that you can keep receiving cosmetics for personal use.  This new policy not only affects Mail Boxes Etc’s customers, it affect all the people that import cosmetics for personal use thru a Courier Company or any similar way in a legal way to the Country.   We apologize for this situation that is completely out of our hands and we will keep you inform.  We appreciate if you can manifest your unhappiness about this situation so we can all together work a favorable solution and you can continue receiving your cosmetics for personal use without problems.   Regards,   Mail Boxes Etc

DESCARGUE AQUÍ COMUNICADO OFICIAL EMITIDO POR EL MINISTERIO DE SALUD DE LA REPUBLICA DE PANAMÁ (PDF)

[Deborah]

Out of curiosity, I did a random sampling of some "cosmetics" I purchased here in Panama: contact lens solution from PriceSmart, deodorant from Revilla and hairspray from Super 99.  None of these had a Panama Reg San number, or any indication whatsoever that they have been approved for import.  Will they be going after the companies that import these items or just the consumers who bring in their own?

[Bonnie]

I'm not sure I understand what you're saying, Deborah. Were you looking for Panama Reg San on the items, or did you check the items against the list of approved drugs and cosmetics listed on http://www.minsa.gob.pa/informacion-salud/registro-sanitario-principal

[Deborah]

I was looking at the product itself, as I was not aware that there was an approved list.  Now that I see there is, I wonder how many items there might possibly be that aren't on that 1,087 page list, and whether there is an expectation that customs is going to check everything against it.  At least I feel more comfortable about what I bring back with me that I can't find here.

[Moderator_02]

Moderator comment: Just curious if this news article could provide some insight as to the recent attention to the importation of pharmaceuticals.

---

 

Quote

Central America: Imports of Pharmaceuticals Up 6%

In 2016 Central American countries imported $3.163 billion worth of pharmaceuticals, 6% more than in 2015.

Tuesday, August 8, 2017

Figures from the information system on the the Pharmaceuticals Market in Central America, compiled by the Business Intelligence Unit at CentralAmericaData: Click to interact with the graphClick to interact with the graph

Explore data in interactive graphs. 

Variation of regional imports  
Between 2015 and 2016, the value of imported pharmaceutical products in Central America increased by 6%, going from $2.993 billion in 2015 to $3.163 billion in 2016. 

Imports from Germany and India increased by 4% and 16%, respectively, as European purchases increased from $224 million in 2015 to $234 million in 2016 and in India from $137 million in 2015 to $159 million in 2016.

Imports by country  
In 2016 the main importer in the region was Costa Rica with $770 million, followed by Guatemala with $633 million, Panama with $523 million, Honduras with $470 million, Nicaragua with $416 million and El Salvador with $351 million. 

Origin of imports 
In 2016, 10% of the value imported from Central America came from the US, 9% from Mexico, 7% from Germany, 5% from India, and 4% from Switzerland.

 

http://www.centralamericadata.com/en/article/main/Central_America_Imports_of_Pharmaceuticals_Up_6

[Bonnie]

12 hours ago, Deborah said:

I was looking at the product itself, as I was not aware that there was an approved list.  Now that I see there is, I wonder how many items there might possibly be that aren't on that 1,087 page list, and whether there is an expectation that customs is going to check everything against it.  At least I feel more comfortable about what I bring back with me that I can't find here.

Agreed. I honestly don't see how the list could be employed in any manner. It's a hodge-podge of drugs and cosmetics, lists of which are posted on various dates without alphabetization. Moreover, if both drugs and cosmetics are on the list, I don't understand why they are treated differently in the latest directive. I confess that I have not spent much time examining the list(s) itself. It's too intimidating.

[Marcelyn]

Bonnie,   Wonder if Customs can identify what is a cosmetic vs. a prescription.

Hopefully a life threatening medicine (legal drug) will not be delayed/refused at Customs. Consequences could be very serious.

[Bonnie]

Below is a report on Facebook by our friend Roger Bellido concerning a television news story about the new cosmetics regulation. It sounds as though the courier companies are making inroads into putting some sense into this. However,  am not aware of anything official being issued yet.

 

This is the news on channel 2. It talks about changes and that will allow people to bring those products but in limited quantitiea

Descontento por restricción en la importación de cosméticos

La Dirección de Farmacias y Drogas del Ministerio de Salud (Minsa) sólo permitirá el ingreso al país de uno o dos productos cosméticos en las compras vía "express".…

tvn-2.com

Top of Form

 

Rogelio Bellido This was the result of a meeting between the Asociation of Couriers Companies in Panama and the Direccion de Farmacias y Drogas. The couriers were concerned about the increased claims from their customers regarding the prohibition to import those goods without any registry in Panama. They agreed in terms of the amount and also every individual should fill a form accepting respinsability for the use of such products

Bottom of Form

 

Edited August 14, 2017 by Bonnie

[Roger B]

Thanks Bonnie

Looks like Airbox Express took the lead for presenting a claim to the authorities.   

Facts:

1.  Cosmetics products and medicines can be imported in Panama but those products should follow  the requisites and must be sent for a Sanitary Registry Code in order to be marketed and sold in the country.

2.  According to what the official of the Direccion de Farmacias y Drogas told the TV Journalist any person could import those products but they are limited to one product per individual and not more than 3 in a month.  Also invoices should be presented and a document must be signed by the person stating that they will be using those products under they own risk.

I called Airbox Express today asking for more clarifications about this and also about medicines.  I ask for a formal note from them telling me about this "new measure".  They promised to send me this email in the afternoon.

Roger

[Uncle Doug]

For what it's worth, I picked up nine bottles of prescription medications this afternoon for my wife and me, shipped in from Florida.  No problems whatsoever.  I was a little worried given the content of this topic, but I've been doing this every 90 days since I've been here.

I've never tried to bring in supplements or cosmetics.  The ladies tell me I look horrible wearing lipstick, anyway.

[Bonnie]

5 hours ago, Uncle Doug said:

For what it's worth, I picked up nine bottles of prescription medications this afternoon for my wife and me, shipped in from Florida.  No problems whatsoever.  I was a little worried given the content of this topic, but I've been doing this every 90 days since I've been here.

I've never tried to bring in supplements or cosmetics.  The ladies tell me I look horrible wearing lipstick, anyway.

Did you have to complete any paperwork, Doug?

[Uncle Doug]

Nope. I simply ordered refills of existing prescriptions at my US pharmacy.  I put my Florida forwarding adress as the shipping address. It arrived today, about 10 days after I placed the order.

The plastic envelope definitely rattles like a bunch of pills in bottles. It's quite apparent what is inside. I've never filled out any forms.

Edited August 15, 2017 by Uncle Doug
Punctuation

[Bonnie]

I'm delighted to hear this, Doug. Others, however, have been waiting for weeks. The uncertainty remains. That's what's maddening, particularly when one's well-being can depend on receiving the drugs.

Who's your courier, if I may ask? It'll be interesting to see if this makes a difference.

[Marcelyn]

Thanks for asking the courier question, Bonnie. That is my question also.

[Uncle Doug]

I'm now reluctant to say publicly for several reasons:

I don't want to create new problems for anyone. Businesses compete. I don't understand this new complication. It seems harmful and indefensible from any perspective -- government,  consumer,  trade union, etc. I don't know who was being "harmed " by the status quo.

I don't subscribe to "misery loves company" , either. Just because some couriers have problems does not mean that all must be required to have problems.

I don't want my next shipment of perfectly innocuous blood pressure and cholesterol control medicine jeopardized.  That's selfish, perhaps, but I am not convinced this problem is universal in Panama as to prescription medicine.

[Marcelyn]

Thanks.  I understand and appreciate your answer.

[Bonnie]

28 minutes ago, Marcelyn said:

Thanks.  I understand and appreciate your answer.

Me, too, Doug.

[Jim Bondoux]

This should come under the heading of "bochinche" and I won't mention my source, but I was told that the Ministry of Public Health was blessed with a new director about three months ago, and that this person went on a power trip, checking all the various sub-administrations and ordering a rigorous enforcement of all the laws and regulations on the books. One of the consequences was the shutdown of imports of cosmetics. It seems that samples were taken from a number of shipments of cosmetics and sent to labs, to verify that the actual ingredients correspond to the labeling.

The uproar and blowback from the freight forwarders has resulted in a lifting of the embargo. There will likely be more scrutiny, restrictions, and delays in getting cosmetics imported than has been the case in the past, but nothing particularly onerous. New procedures and announcements will be forthcoming, but everyone is in face-saving mode, so it may take a while longer to clear up the situation.