Panama customs rules & duty-free allowances

Last reviewed July 2, 2026·Official source

Panama's biggest customs risk is its strict biosecurity: any undeclared food, plant, or animal product can lead to fines and confiscation. Also, the duty-free allowance of USD 800 applies only to non-residents arriving by air; residents and land/sea arrivals get only USD 300.

Duty-free allowances

Alcohol
1.0 L
1 liter of alcoholic beverages over 22% ABV, OR 2 liters of wine or beer. Must be 18+. Over this, duty is 10% CIF + 7% ITBMS.
Tobacco
200 cigarettes
or 50 cigars / 250 g
Cash to declare
$10,000
PAB 10,000 (USD 10,000) or equivalent in any currency. Declare on the Customs Declaration Form (Form 1) at the red channel. Panama uses USD as legal tender, so no conversion needed.
Goods duty-free
$800
USD 800 (PAB 800) duty-free for personal goods and gifts. Over that, duty is 10% CIF + 7% ITBMS on the excess. Applies only to non-residents arriving by air. Residents and land/sea arrivals have a USD 300 (PAB 300) allowance.

Prohibited — banned from import

  • Narcotics and psychotropic substances (except with a prescription and permit)
  • Firearms, ammunition, and explosives (unless with a special permit from the Ministry of Public Security)
  • Counterfeit goods and pirated materials
  • Obscene or immoral materials (including child pornography)
  • Endangered species and products (CITES-listed items without a permit)
  • Radioactive materials and hazardous waste

Restricted — allowed with a permit or declaration

  • Medications containing controlled substances (require a prescription and prior authorization from the Ministry of Health)
  • Plants, seeds, and agricultural products (require a phytosanitary certificate from the Ministry of Agricultural Development)
  • Drones (require registration with the Civil Aviation Authority and a permit for import)
  • Satellite phones (require a permit from the National Authority for Government Innovation)
  • Cultural artifacts and antiques (require an export permit from the National Institute of Culture)

Arriving: red vs green channel

After collecting your luggage, proceed to customs. If you have nothing to declare, use the green channel. If you have goods over the allowance, cash over USD 10,000, or restricted items, go to the red channel and fill out the Customs Declaration Form (Form 1). No separate arrival card is needed.

Bringing medication

Personal medications in original packaging with a prescription are allowed for up to 3 months' supply. Controlled substances (e.g., opioids, stimulants) require prior authorization from the Ministry of Health. Codeine-based painkillers are controlled — carry a doctor's note.

Food, plants & animal products

All food, plants, seeds, and animal products must be declared. Fresh fruits, vegetables, meats, and dairy are generally prohibited without a phytosanitary or zoosanitary certificate. Processed, commercially sealed foods in small quantities are usually allowed for personal use.

Rules worth knowing

Duty-free allowance only for air arrivals

The USD 800 duty-free allowance applies only to non-residents arriving by air. Residents and those arriving by land or sea have a lower allowance of USD 300. If you're a resident, you're taxed on everything over USD 300.

Panama uses USD as legal tender

The Panamanian balboa is pegged 1:1 to the USD, and US dollars are used for all cash transactions. There's no currency exchange needed, but the cash declaration threshold is still USD 10,000.

Strict biosecurity at all ports

Panama is serious about protecting its agriculture. All food, plants, and animal products must be declared. Failure to declare can result in fines and confiscation. Even a single apple in your bag can cause problems.

Frequently asked questions

Yes, if they are for personal use and within the USD 800 duty-free allowance. If the total value exceeds USD 800, you pay duty on the excess. Keep receipts handy.
Residents have a lower allowance of USD 300 (PAB 300) for goods, regardless of mode of travel. Over that, duty is 10% CIF + 7% ITBMS. The alcohol and tobacco allowances are the same as for non-residents.
No, personal medical devices like glasses, contact lenses, and hearing aids are generally exempt from duty and do not need to be declared, as long as they are for your own use.
Yes, Cuban cigars are legal in Panama. They count toward your tobacco allowance (50 cigars). No special permit is needed.
Undeclared cash can be confiscated, and you may face fines or legal action. Always declare at the red channel using Form 1.
Drones must be registered with the Civil Aviation Authority of Panama (AAC). You'll need to show proof of registration and a permit at customs. Without it, the drone may be seized.
Yes, commercially packaged, shelf-stable foods like chocolate, cookies, and candies are generally allowed for personal use. Just declare them if asked. Avoid fresh fruit, meat, or dairy.