Author: Igra

By Fernando Gonzalez-Ruiz – Associate

As expected, counterfeiters do not rest, even amid the pandemic that affects us all worldwide.

According to statements from the Ministry of Health, the spread of Covid-19 can be caused by contact with an affected person who coughs or sneezes, or also by touching contaminated objects or surfaces and then touching your nose, mouth or eyes. For this reason, the World Health Organization (WHO) has issued some basic protection measures to avoid infection, which have been adopted by the Panamanian government, such as maintaining physical distance, washing hands frequently, and wearing face masks in public places, among others.

As a consequence of the adoption of these preventive measures, many people ran to supermarkets and pharmacies to buy hand sanitizer, household disinfectants, face masks, thermometers, and gloves, which caused the volume of sales of these types of products to skyrocket. In many countries, including ours, the use of face masks is mandatory when you leave the house. In others, businesses make this a mandatory requirement to be able to enter their establishments. Because of this, there has been a shortage of these products in pharmacies and/or stores in general. The phrase “if you want face masks, thermometers, gloves or hand sanitizer, I have a friend who sells them”  has become overly familiar.

Due to the problem that has been seen in other countries, where illegal websites, social network accounts, and other online sales channels offer medicines that even promise to cure Covid-19, which the WHO and our health authorities have warned that do not exist yet,  the National Directorate of Pharmacy and Drugs issued a statement warning the population not to buy drugs from unauthorized vendors, since these drugs may be contaminated -during their production-, false or incorrectly labeled.

In recent days, INTERPOL coordinated Operation Pangea XIII, in which the police, customs, and health regulatory authorities from 90 countries participated. In this operation, counterfeit face masks, substandard hand sanitizers, and unauthorized antiviral medication were seized. The operation resulted in 121 arrests worldwide and the seizure of potentially dangerous pharmaceuticals worth more than US$14 million.

Panama is not far behind in this new scheme. During this health crisis, we have been able to observe a large number of Instagram accounts in which face masks of all kinds, hand sanitizers, thermometers, and gloves are promoted and sold, even as packages recklessly called “KIT AGAINST COVID-19”.

After analyzing several of these accounts, we could see that many of them misuse the term PHARMA in their name, some describe their business as “home delivery pharmacies,” and others use logos similar to that of a legally established pharmacy. The latter is undoubtedly misleading for the consumer, since it implies that it is an authorized pharmacy, which to be able to legally operate in Panama requires, after complying with a series of requirements, a special License to Operate issued by the National Directorate of Pharmacy and Drugs.

It is important to note that many of these face masks, hand sanitizers, and gloves that are sold through these accounts, mostly do not carry any type of brand or label that guarantee that they are genuine products or that they comply with the sanitary regulations imposed by Panamanian legislation.

The vast majority of the hand sanitizers offered do not indicate on their labels the name of the manufacturer or the Sanitary Registration number issued by the National Directorate of Pharmacy and Drugs.

Fake face masks, gloves, thermometers, and hand sanitizers can pose a threat to the well-being of medical workers and anyone who uses them, as they are not made from the correct materials or ingredients, or in sterile environments. In the specific case of face masks, according to industry experts, they lack the specifications that prevent the entry and exit of pathogens that disperse through the airways.

These masks are often manufactured in countries like Turkey, India, and China. In Turkey alone, police reportedly raided an unauthorized factory where they seized one million face masks. Another example is that of the Spanish government, which bought thousands of kits to carry out coronavirus tests manufactured in China, which were found to be defective and, therefore, ineffective. They were purchased from a company to which the Chinese government had not granted the required authorization.

The sale of these products in Panama, can not only be considered a crime against Intellectual Property, but also a crime against public health, both typified by our Criminal Code that carry penalties of between three to six years in prison. By offering, without being legally authorized, these products that do not have the corresponding registrations to be sold in our country, consumers, thinking of being protected, could contract this disease, which in some cases could be lethal.

It is essential to be aware and very alert when we buy these types of products, to avoid being deceived, and to ensure that we are purchasing high-quality sanitary products that will truly protect our health and that of our families.

The Panamanian government has adopted several regulations to protect and support its citizens, entities, and businesses during the State of National Emergency declaration due to COVID-19.

For your easy reference, we have compiled the regulations in a report, where you can find them listed by each governmental entity. To download the report, click on the following link: Report of Regulations implemented in Panama – updated May-8.

This document will be updated as the government implements new regulations.

If you have any questions about how you may be affected by these measures, please email us at igranet@icazalaw.com.

By Ricardo Alberto Ceballos – Associate

The Ministry of Housing and Territorial Planning (MIVIOT), through a press release dated March 25, 2020, advises the administrators of horizontal properties that, while the national emergency lasts, they will not be able to suspend essential services. At the same time, they urge the members of the Boards of Directors to be solidary and flexible with the payment of fees for common expenses, to suspend the surcharges for late payment, and to promote possible payment arrangements with those owners who are being economically affected by the national quarantine.

However, the Minister stated how important it is that owners continue to comply with the payment of fees so that the horizontal property can continue operating properly. The Minister also clarified that the Ministry’s statement is based on recommendations, as only the Board of Directors can make decisions on behalf of the Assembly of Owners. For this reason, in these times of crisis, it is recommended that the decisions to be taken by the Boards of Directors are made for the benefit of the horizontal property so that that the buildings or housing developments subject to the Horizontal Property Regime can continue to meet their obligations with their suppliers and that their operations are not affected, as in the specific case of private security and maintenance of elevators, etc.

In conclusion, only the Boards of Directors can adopt measures aimed at preserving health and safety in the face of the national emergency that the country is experiencing and considering the measures already established by the Panamanian State that restricts crowds, as may occur during Owners Assembly meetings.

On March 20, 2020, Panama enacted Law No. 129 that creates the Private Registry System of Final Beneficiaries of Legal Entities.

The law approved the transfer of the custody of the information on the identity of the Final Beneficiaries of legal entities to the Superintendence of Non-Financial Subjects, who will be responsible for the administration of the new system. The Resident Agents’ obligation to identify the final beneficiaries of all the entities for which they provided their services was already in place before the law was adopted.

Below you may find a general overview that summarizes the obligations and actions needed to take to comply with the new regulations.

Who is a beneficial owner?

The law defines the Final Beneficiary of an entity, in general terms, as the person or individuals who:

• directly or indirectly own or control 25% or more of the shares or voting rights in a legal entity,
• whoever owns, controls and/or exercises significant influence over the account relationship, contractual and/or business relationship, or
• the natural person in whose name or benefit a transaction is made, which also includes natural persons who exercise final control over a legal entity.

What information will be held on beneficial owners?

Resident Agents must file with the Superintendence the following minimum information on the Final Beneficiaries, which they must have collected during their due diligence process and which they must keep in their files along with updates:

1. full name,
2. passport or personal identification document number,
3. date of birth,
4. nationality,
5. address,
6. date as of having the condition of Final Beneficiary of the entity, and
7. main activity.

This information must be filed into the system within 30 business days following the constitution of the entity, its establishment in Panama, or since the change in the previously registered information occurred. The Resident Agent is obliged to resign if the client does not provide the information required to complete its due diligence process and from which the Resident Agent shall obtain the information with which the Superintendence database must be fed.

How long will information be kept?

The information provided by the Resident Agent shall remain in the system for the existence of the legal entity. It must be retained for five years following the entity’s dissolution at the Public Registry of Panama.

Who may request a search of the system?

A search may be formally requested to the Superintendence only by the following Panamanian public investigation entities:

• the Financial Analysis Unit,
• the Public Ministry,
• the Ministry of Economy and Finance,
• the Superintendence of Banks, or
• the Superintendence of the Securities Market,

and must relate to specific cases within investigative processes on money laundering, terrorism financing and weapons of mass destruction, or of assistance under treaties or international agreements signed by Panama.

In addition, the law prohibits the adoption of precautionary or discovery measures in cases of judicial proceedings between individuals, so that a third party may not have access or obtain such information as a result of legal disputes.

Security and confidentiality

The Superintendence will keep the information in a restricted-access database and shall only exercise custody, conservation, and access functions of the information it receives from the Resident Agents. It is not allowed to carry out investigative functions, nor will it allow third parties to have access to said information.

Resident Agents and designated persons may only access the data maintained on the database.

Obligations of the Resident Agent

The system is designed so that the Resident Agents directly file the information in the Superintendence database. The Registered Agent is responsible for submitting the information and maintaining the database updated and must carry out due updates within 30 days of receiving information on applicable changes.

The Resident Agents must have completed the filings of all their clients in the database within six months from the date on which the Superintendence has informed them that the database is enabled for access.

With the adoption of this legislation, Panama implements a technological platform already used and tested by other competing countries, which puts us at the forefront of new corporate trends providing an adequate balance between the duty to know the identification information while avoiding abuses of the corporate system and maintaining a high degree of confidentiality for those who use legal persons for commercial, inheritance and estate planning purposes that are not contrary to the law.

Should you have any questions about this new legislation, please contact your attorney or email us at igranet@icazalaw.com.

It was recently approved by Law 99 of October 11th, 2019, a tax amnesty that condones the payment of interest, surcharges and fines of taxes in arrears (taxes, fees and special contributions) and owed by taxpayers, as well as fines for late returns or omissions of any taxes under the jurisdiction of the General Directorate of Revenues.

Natural and legal taxpayers and real property shall be eligible with taxes caused and delinquent as of June 30th, 2019. Therefore, these are included in the amnesty law:

1. Those who maintain payment arrangements as of the effective date of the law;
2. Taxpayers, withholding agents and other persons responsible for taxes;
3. Taxpayers, with pending proceedings, prior abandonment to then comply with the payment of the obligation.

This does not include proceedings for administrative tax evasion or criminal tax fraud.

The amnesty shall proportionally condone the interests, surcharges and fines if paid as follows: (*)

1. 100%        …………………    if paid in October and November 2019
2. 95%        …………………    if paid in December 2019
3. 90%        …………………    if paid in January 2020
4. 85%        …………………    if paid in February 2020

The following reports, which were due by June 30th, 2019, are exempted from their respective fines:

1. Report of Donations received
2. On-Declaring Taxpayers (NGO) Report F-27
3. Payroll Report 03-F3
4. Report of Retirement Fund, Pensions and Other Benefits F-40
5. Insurer’s Report-Certification of Medical Expenses by Insured F-41
6. Certification of Interest on Resident Non-Preferential Mortgage Loans F-42
7. Report on purchases and imports of goods and services F-43
8. Credit Card Sales Report (VTD) F-44
9. Transfer Pricing Report F-930
10.   Affidavit of remittances abroad presented by SEM companies and by companies in Panama Pacifico
11.  Any other affidavit, omitted or report.

Those who made a payment agreement or arrangement prior to this law may abandon it and avail themselves to the benefits of the law. Likewise, they shall be able to make a payment agreement paying 25% of the nominal tax and the surcharges, interests and fines shall be condoned in the same proportion and periodicity as indicated in the section above. (*) However, the payment arrangement may not exceed the deadline of 30th June 2020.

The tax debts already prescribed shall be applied in the application for acceptance of the moratorium upon request of the taxpayer at the time of paying their debts through the website, personally or through an attorney-in-fact.

Fines for late declaration of improvements made to a real property are included if the public deed with the improvements declared and registered at the Public Registry is submitted to ANATI.

All formalities must be managed with the NIT or through a legal attorney-in-fact.

 Download PDF Version

Any traveler that wishes to bring his pet to the Republic of Panama may do it, provided that he complies with the requirements established by Law 23 of July 15th, 1997, law which empowers the Ministry of Agricultural Development to regulate this matter.

All the owners which enter their pets (cats and dogs) to the Panamanian territory must submit the following documentation:

1. Vaccination Certificate (Rabies, Distemper, Parvovirus, Leptospirosis, Hepatitis)
2. Good health certificate issued by the attending veterinarian

     Both documents must be authenticated by the Panamanian Consul in the country of origin or legalized by Apostille.

The pet owner must notify the pet´s arrival three (3) days in advance by means of a form called “Domiciliary Quarantine Application Form”. This form could be obtained in this site Click here

Upon arrival at the Tocumen International Airport, the traveler must file the aforementioned documentation before a Health Ministry representative at the offices located at the Customs area. There the following must be paid:

1. US$130.00 for each animal, which corresponds to the cost of the domiciliary quarantine formalities. This payment must be in cash.
2. US$1.00 for the license application form.
3. US$5.00 for the Phytosanitary license.
4. US$10.00 for the veterinary inspection.

It is a duty of the carriers, whether land, sea or air, to demand to the interested parties (pet owners) all the requirements established by the Ministry of Agricultural Development. In case of not fulfilling this requirement, the carriers shall be fined. These fines range between US$100.00 up to US$100,000.00, depending on the seriousness of the offence, the damages incurred, aggravating or extenuating circumstances of the offence, social and economic repercussion, as well as the reoccurrence of the offender.

Discounts for vessels which are enrolled before December 31st, 2015

We are pleased to announce that the resolutions of the General Directorate of Merchant Marine No. 106-65-DGMM and 106-66-DGMM with significant incentives for the maritime sector have been published in Official Gazette No. 27628 of September 24th, 2014 which we share as follows:

IMPORTANT ISSUES OF THE RESOLUTION No. 106-65-DGMM

As of September 17th, 2014 until December 31st, 2015, all vessels of new construction with a registered gross tonnage above 10,000 and built in shipyards located in Japan, Hong Kong, People’s Republic of China, Singapore, South Korea del Sur, Taiwan, Philippines, Indonesia, Vietnam, France, Germany, Norway, Holland and Italy. The same benefit shall apply to all new built MODUS. For those vessels of new construction which do not comply with the above, other incentives shall apply.

Discounts shall be granted up to 100% on the Registration Fee, Annual Consular Fee, Casualty Investigation Fee, Inspection Fee, Fee of 0.03% per each Net Tonnage.

IMPORTANT ISSUES OF THE RESOLUTION No. 106-66-DGMM

Up to 100% discount is granted for the term of two (2) years, to all those vessels which register in the Panamanian Merchant Marine, as of September 17th, 2014 until December 31st, 2015 regarding the Registration Fee, Annual Consular Fee, Casualty Investigation Fee, Fee of 0.03% per each Net Tonnage.

This discount or waiver shall be granted under certain conditions such as:

• Have been previously registered within the Panamanian Merchant Marine;
• Have a Registered Gross Tonnage over 10,000 (GT);
• Less than 10 years of construction;
• Vessel is not listed neither on the MOU Detention List nor on the Security Council of the UN;
• The deletion of the Vessel before the Panamanian Registry was not due to causes affecting national interests.

Vessels which benefit from this discount must remain registered for a period of five years in the Panamanian Registry. In the event that a vessel is deleted before said term, it shall pay all fees and charges discounted.

Among other considerations, it is important to emphasize that these discounts (both resolutions) shall only apply for one year period from the enrollment, as long as the vessel is not enrolled after December 31st, 2015.

Kindly contact our experts in Maritime Law to learn more about this subject bd@icazalaw.com.

ICAZA, GONZALEZ-RUIZ & ALEMAN, is pleased to announce that our partner, Gabriela Tejada de Britton, has been listed as leader in the IP Section of THE BEST LAWYERS INTERNATIONAL® 2015 edition, Panama Chapter.

This recognition is based on a peer review process regarding her IP practice and professional abilities. Gabriela Tejada de Britton is responsible for the Intellectual Property Division of our firm, which provides outstanding legal advice on trademarks, patents, utility models, industrial designs, slogans, copyrights, trade and domain names, and has attracted a prestigious clientele throughout the commercial, services and industrial sectors”

The International Trademark Association’s 2015 Leadership Meeting in Panama to be its first major event in Latin America

Phoenix, Arizona – November 13, 2014 – The International Trademark Association (INTA) announced today that its 2015 Leadership Meeting will take place in Panama City, Panama. INTA’s Leadership Meeting convenes the global trademark community’s key decision makers. Its 2015 Leadership Meeting will be the Association’s first major event in Latin America. INTA CEO Etienne Sanz de Acedo made the announcement today during the Opening Ceremony of the 2014 Leadership Meeting in Phoenix, Arizona

In explaining the choice of Panama, Mr. Sanz de Acedo discussed the significance of the Panama Canal expansion, and its impact on global trade and on the global trademark community. The existing locks allow the passage of cargo ships that can carry up to 5,000 20 foot containers. The expansion of the canal includes the construction of locks that can cater megaships carrying up to 12,600 containers. This will effectively double the canal’s annual capacity from 300 million PCUMS (Panama Canal Universal Measurement System) tons to 600 million PCUMS tons. “It will, no doubt, improve the economics of scale for the maritime shipping industry with a ripple effect on all industries that rely on long distance maritime shipping,” said Mr. Sanz de Acedo.

“The expansion of the Panama Canal represents an extraordinary shift in how the global economy operates,” said INTA President Mei-lan Stark (Fox Entertainment Group). “The 2015 Leadership Meeting will provide leading intellectual property attorneys and business people from all over the world with a unique opportunity to see the canal first-hand at this pivotal moment in its history. Indeed, the expanded canal is going to be a global game-changer, and we will be there to witness it.”

The decision to take the Leadership Meeting to Panama in 2015 is in accordance with the Association’s continuing goal of internationalization, and to better serve its global membership. INTA hosted its first major event outside the United States in 2003 when it took its Annual Meeting to Amsterdam. In 2008, the Annual Meeting returned to Europe with another successful Annual Meeting in Berlin. Then, in May 2014, the Association took the Annual Meeting to Hong Kong, its first major event in Asia. More than 8,600 trademark practitioners from over 140 countries attended the event, making it INTA’s largest Annual Meeting outside North America.

INTA’s Leadership Meeting brings together its leadership and member volunteers once a year to advance the Association’s objectives and goals, to plan the coming year’s activities and events, and to look to the future of INTA. The meeting includes an advanced-level educational program, providing members with valuable information on the latest developments in trademark law. The occasion also provides INTA’s leaders with an opportunity to exchange ideas, conduct business and to network with colleagues from around the world. With over 1,300 INTA member volunteers from 77 countries attending, the 2014 Leadership Meeting is the largest to date.

About INTA

The International Trademark Association (INTA) is a global association of trademark owners and professionals dedicated to supporting trademarks and related intellectual property in order to protect consumers and to promote fair and effective commerce. Members include more than 6,400 trademark owners, professionals and academics from more than 190 countries, who benefit from the Association’s global trademark resources, policy development, education and training, and international network. Founded in 1878, INTA is headquartered in New York City, with offices in Brussels, Shanghai and Washington, D.C., and representatives in Geneva and Mumbai. To learn more about INTA, please visit www.inta.org.

This press release can be found here on inta.org.

http://www.inta.org/Press/Pages/LM2015_Panama_En.aspx

ICAZA, GONZALEZ-RUIZ & ALEMAN, Member of 2015 INTA’s Leadership Meeting Project Team.

New provisions applicable in relation to the consolidated supervision to the banking groups by the Superintendence of Banks of the Republic of Panama.

Recently, the Banking Authority issued Agreement 7 of 2014, whereby a number of parameters is established for the consolidated supervision of what the law calls Banking Groups, defined by the Banking Law as those “… constituted by bank holding company and its subsidiaries at any level whose predominant activities consist of providing services in the banking or financial sector; including nonbanking subsidiaries of the latter, which, in the opinion of the Superintendency, are operating under common management, either through a bank holding company or by different participations or agreements.”

The new regulations have as scope of application the Banking Groups upon which the Banking Authority exercises exclusively the consolidated supervision of origin, this being understood as the one applicable to Panamanian Banks and banking groups consolidated in our country.

Within the main parameters developed by the Agreement, we outline the following:

• Requirement to maintain a functional structure of Corporate Governance, which secures a strategic orientation, describing the main elements of good corporate governance, in accordance to the Superintendence of Banks standards.
• Establishes the sixteen (16) responsibilities applicable to the members of the board of directors of bank holding company, subject to Agreement 7 of 2014.
• Application of appropriate internal control systems.
• To create an Audit Committee, responsible for the permanent evaluation and follow-up of the group audit. The Agreement details the duties of the abovementioned Committee, that is, very important duties are assigned to it in an imperative way which starts with the verification of Internal Control.
• To develop parameters which secure professional and suitable execution of internal audits pursuant to international standards and best practices.

In addition to the aforementioned, it is specifically developed the profile of the directors and officers of a Banking Group: recognized moral and economic solvency and, in our view the most relevant, incompatibilities applicable to them to be appointed in those offices. For example, it is noted that the Superintendent shall obtain the necessary information about the directors, officers and executives nominated for the administration of the Banking Group, in order to assess individually each of them regarding their experience in financial business, professional competence, moral integrity and relevant background.

We deem necessary to note that the regulatory standards set forth in this Agreement is intended to strengthen the areas of concentration of risk, definition of related parties and its limits of concentration consolidated with these, as well as its exceptions.

Due to the extent of the provisions, it is not feasible to expose a comprehensive analysis of the Agreement. However, we remain at your disposal to answer inquiries about its scope, authority queries regarding the construction and drafting of Handbook of Corporate Governance, review of Handbook of Risks, among other.