International Parcel Delivery | Blog

Shipping to Panama from Canada: 2026 Logistics  Guide

Written by Timothy Byrnes | April 21, 2014

International parcel shipments to Panama from Canada continue to grow as Canadian companies benefit from the Canada–Panama Free Trade Agreement. Beyond basic trade, Panama's unique access to global shipping vessels makes it a critical logistics hub. Whether you are shipping aerospace parts or pharmaceuticals, Canadians depend on low-cost, reliable parcel shipping options to Panama.

What this Guide Covers:

  • Carrier Options: Canada Post vs. Couriers
  • Customs Clearance & Duty-Free Benefits
  • New: Using AI for Customs Compliance
  • Importing to Canada from Panama
  • Incredibly useful videos for shipping to and from Canada

The Canada–Panama Free Trade Agreement facilitates the flow of goods, reducing barriers for Canadian exports. Panama remains one of the top merchandise export markets in Central America, and understanding the logistics landscape is vital for success.

Disclaimer: The information in this blog is for general information only.

Options for Shipping Panama from Canada

1. Canada Post (Economy / Personal)

Canada Post is the preferred choice for individuals shipping small packages and personal items to Panama. Packages are transferred to and delivered by Panama Post (Correos).

Services Include:

  • Small Packet International (Surface and Air)
  • International Parcel (Surface and Air)

2. Commercial Couriers (FedEx, UPS, Purolator)

For traceable, time-sensitive shipments, private carriers are the standard.

Services Include:

  • International Express Priority (1-3 Days)
  • International Economy Air (3-6 Days)

Note: Purolator uses partners like UPS for international deliveries to Panama.

3. Jet Worldwide (Logistics Support)

A trusted brand offering international shipping for over 40 years!

Jet Worldwide bridges the gap between basic courier services and complex freight forwarding. Transparency and logistics support for over 40 years!

 

🤖 Logistics Innovation: Using AI for Panama Shipping

To reduce customs delays, modern shippers are using Artificial Intelligence (AI) to prepare their documentation. Here is a strategy you can use today with tools like ChatGPT or Gemini:

📋 The "HS Code" Prompt Strategy

Correctly classifying your goods is the #1 way to ensure you get duty-free benefits under the Free Trade Agreement. Try this prompt:

"I am shipping [Product Name] made of [Material] from Canada to Panama. What is the most likely Harmonized System (HS) Code for this item, and does it generally qualify for preferential treatment under the Canada-Panama Free Trade Agreement?"

Note: Always verify AI suggestions with a customs broker or official tariff schedule.

🇨🇦 🇵🇦 The Canada-Panama Free Trade Agreement (CPAFTA)

Since its implementation, the CPAFTA has eliminated tariffs on over 90% of Canadian goods exported to Panama, with most remaining tariffs having been phased out by 2026. This gives Canadian businesses a significant price advantage over competitors from non-treaty countries. Read about Canada's Free Trade Agreements.

Key Sectors Benefiting from 0% Duty:

  • ✈️ Aerospace: Parts & Simulators
  • 💊 Pharmaceuticals: Health products
  • 🚜 Agriculture: Frozen potato products, pulses, malt, and premium beef/pork.
  • 🏗️ Construction: Machinery & Equipment

How to Qualify: Rules of Origin

Just because you ship from Canada does not mean your goods are "Canadian." To qualify for duty-free entry into Panama, your goods must meet the Rules of Origin:

  1. Wholly Obtained: Grown, fished, or mined entirely in Canada.
  2. Substantial Transformation: Imported materials must undergo a significant change in Canada (e.g., a "Tariff Shift" in HS Code) to be considered Canadian.

Certification Requirements

To claim preferential treatment, the exporter must provide a Certificate of Origin to the importer. While a specific prescribed form is not strictly required, the declaration must include specific data elements.

🤖 2026 Innovation: Using AI for FTA Compliance

Determining if your product meets the "Rules of Origin" can be complex. You can use Generative AI tools (like ChatGPT or Gemini) to start your assessment.

📋 The "FTA Eligibility" Prompt Strategy

Try this prompt to see if you qualify for duty-free status:

"I am exporting [Product Name] from Canada to Panama. The product is made of [List Raw Materials and their Country of Origin]. Does this product likely qualify for preferential tariff treatment under the Canada-Panama Free Trade Agreement based on the Rules of Origin? What is the likely HS Code?"

Note: AI provides a starting point. Always verify with an import specialist and customs broker in Panama before shipping.

Importing Goods to Panama from Canada

Shipping Terms (IncoTerms)

The default option for shipping internationally is DAP (Delivered at Place), often referred to as DDU (Delivery Duty Unpaid). This assigns all import costs to the receiver. Canadian shippers can choose to pay these fees via a DDP (Delivery Duty Paid) option. 📖 Guide: IncoTerms for Online Orders

Valuation and Duties

Panama assesses duties on the CIF Value (Cost of goods + Insurance + Freight). Panama adheres to the WTO Customs Valuation Agreement.

  • Duty Rate: Average is ~12%.
  • Free Trade Benefit: Goods originating in Canada often clear Duty-Free.
  • VAT (ITBM): A 7% tax applies to the CIF value + duty.
  • Exemptions: Pharmaceuticals, food, and school supplies are often excluded from ITBM.

The "Free Zone" Advantage: Municipal and local taxes generally do not apply to firms operating in the Panama Free Zone.

Shipping from Panama TO Canada

Carrier Options:

  • Panama Post (Correos): Imported and delivered by Canada Post.
  • Express Carriers: DHL, FedEx, and UPS offer Air Express and Economy options.
  • Jet Worldwide: Economy express options for heavier parcels and commercial shipments

Canadian Import Fees and Clearance

Consignments imported from Panama are subject to GST/HST and duty. However, under the Courier Low-Value Shipment (CLVS) program, clearance is streamlined.

  • Under CAD $20: Duty and tax-free.
  • CAD $20 - $3,300: Streamlined LVS clearance (Duties/Taxes apply).
  • Canada-Panama FTA: Panama-origin goods may qualify for duty-free entry if accompanied by a certificate of origin.

Contact Jet’s logistics team to get an estimate of import fees.

Get a Quote: Panama - Canada Logistics

Jet Worldwide provides access to companies seeking shipping quotes between Panama (and all of South/Central America) and Canada for parcels, pallets, and e-commerce orders.

Related Resources