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With this expanded glossary, customers and companies operating in the Colon Free Zone can now better understand the specific terms of this logistics ecosystem. If you have clients seeking to optimize costs, reduce delivery times, and leverage the fiscal structure of the CFZ, this glossary will serve as a key reference for understanding the essential processes.

A

Reexportation Agreement

Process by which goods imported into the CFZ can be shipped to another country without incurring taxes in Panama.

Value-Added Area

Zones within the CFZ where goods can undergo additional processes such as labeling, repackaging, or customization before reexportation.

B

Fiscal Benefit in the CFZ

Exemption from taxes and tariffs for goods stored, processed, or reexported within the Colón Free Zone.

Transit Warehouse

A temporary storage facility where goods are held while they are in the process of import or reexport, facilitating rapid clearance.

C

Regional Distribution Center (RDC)

Infrastructure in the CFZ where companies store products and redistribute them to various markets across Latin America and the Caribbean.

Consolidation of Merchandise in the Free Zone

The process of grouping products from different suppliers into a single shipment within the CFZ to optimize logistical costs and reduce tariffs.

Customs Movement Code (CMC)

A number assigned to logistical operations within the CFZ, facilitating the tracking and control of goods in transit.

D

Commercial Warehouse

A space within the CFZ where merchants can display and sell products to wholesale buyers without the need for immediate clearance.

Reexportation Warehouse

A storage facility where goods remain in transit until they are shipped to their final destination outside of Panama.

E

Free Zone Fiscal Label

A special seal that certifies a product is in the CFZ and has not been nationalized in Panama, allowing its reexportation without taxes.

Temporary Exportation

A procedure that allows goods to leave the CFZ for a limited period—for demonstrations, trade shows, or testing—with the condition that they are reimported without incurring taxes.

F

Billing in the Colón Free Zone

The mechanism by which merchants in the CFZ sell products to foreign companies without applying local taxes.

I

Deferred Importation

A strategy used in the CFZ to bring in goods in different phases and consolidate them before shipping to their final destination.

Inventory in Transit

Products that have arrived in the CFZ but have not yet been dispatched to their final destination.

L

Operating License in the CFZ

The permit granted by Panamanian authorities to companies to operate within the Colón Free Zone.

P

Logistics Services Platform (LSP)

Infrastructure in the CFZ where storage, labeling, repackaging, and distribution operations are integrated to optimize the supply chain.

R

Reexportation

The shipment of goods from the CFZ to another country without those goods being consumed or nationalized in Panama.

Goods Movement Record (GMR)

A document detailing the entry and exit of products within the CFZ, ensuring traceability and compliance with regulations.

S

Integrated Inventory Control System (IICS)

A platform used in the CFZ to record and monitor the location, movement, and status of goods within warehouses.

T

International Transit of Goods (ITG)

The process that allows cargo to be moved from the CFZ to other countries without undergoing Panamanian customs procedures.

Transshipment in the Free Zone

The transfer of goods from one mode of transportation to another (e.g., from ship to truck or plane) without entering the Panamanian market, thereby expediting international distribution.

V

Value Added in the CFZ

The set of processes such as repackaging, assembly, labeling, or product adaptation performed before reexportation.

📌 Do you need a logistics solution in the Colón Free Zone?

At Global Cargo, we offer specialized services in warehousing, consolidation, reexportation, and distribution, ensuring that your business takes full advantage of the benefits of the CFZ.

📞 Contact us for personalized consultation and discover how to optimize your supply chain in Latin America and the Caribbean. 🚛🌎📦