Colon Free Zone

The biggest free trade centers of the Americas, the Colon Free Zone is a gigantic establishment at the Atlantic gateway to the Panama Canal. The Colon Free Zone was set up to re export a huge variety of merchandise to Latin America and the Caribbean’s. The strategic geographical location of the Colon Free Zone is one of the key reasons for its enormous success. Located at close proximity to North America, the Tigers of the Pacific and relatively close to Europe have lent the Colon Free Zone the advantages it enjoys as an ideal hub for economic activity.

Constant upgrading and modernization for warehouses, shipping and transit systems makes sure the Colon Free Zone achieves its aims at becoming the main commercial distribution center for the Americas.

Global Logistics Center:

With access to both the Atlantic and the Pacific, nearly all world routes pass through the Colon Free Zone, located as the Atlantic gateway to the Panama Canal. A wholesaler or retailer can go to the free zone and buy products depending on their individual requirements. Such is the system that zone importers bring products in containers and can either break it up for retailer requirements or wholesalers.

The Colon Free Zone functions on 3 basic principles:

• Globalization of Trade

• Speed and Efficiency of Transit

• Competitive Prices

Facts about the Colon Free Zone:

• Over 2000 companies operate within the 400 hectare location. Although the Hong Kong Free Zone is the largest in the world, it is the Colon Free Zone with its geographic advantage that is more efficient and has fast distribution facilities.

• The Colon Free Zone handles re exports and imports to the tune of $10 billion a year.

• The Colon Free Zone has a 15,000 strong bilingual workforce

• The legal tender is the US dollar, which makes trade easier.

• The Colon Free Zone is served by five major ports which are at a few kilometers distance from one another.

• Major markets are countries in South and Central America and also include Venezuela, Ecuador, Columbia and Brazil

• All major imports are from the United States, Hong Kong and Japan.

• Strict measures are in place to deal with the illegal business of money laundering and brand name piracy.

Establishing a Business:

The Colon Free Zone attracts some serious foreign investors and also people who want to set up a business establishment. The Colon Free Zone is open to anyone looking to set up business, all one needs to do is apply to the administration. The only necessities are land and commercial references, a Panamanian government tax clearance, the articles of incorporation in case of a company.

No commercial license is required and there is no minimum capital investment. As long as the business employees five Panamanians, there are no restrictions.

Premises to set up business can be rented from a private owner. Or a company can lease a land for a period of 20 years and set up its own construction subject to administration approval of course.

Helpful Tips:
• Your passport must be on your person at all times
• Since no taxis or rental cars are allowed in the premises, one has to walk around.
• Because of the tropical climate the temperatures hover at 20 to 30 degrees. Hence the dress code is typically casual
• Colon Free Zone does not have any restaurants; however there are local street vendors with a variety of quick meals.
• The Colon Free Zone operates mainly on wholesale policy. Although some companies will sell on retail, no one can leave with any merchandise due to strict customs regulations.
• If you are making purchases (several) then make arrangements to transfer them to a local company, which can then send all your purchases to the airport.
(Free Zone merchants can help you in this process)

How to get to Colon Free Zone?

You can travel to the Colon Free Zone using rented cars, bus or trains from Panama City. Colon is located about one and half hours from Panama City or two hours by road from the Tocumen airport which is in Panama City.

You can hire a taxi from either Tocumen airport or any of the city hotels; the charge is approximately $60 US dollars for up to four people, traveling one way.

Buses to Colon Free Zone leave every half hour till about 11 am, and then once every hour. Bus fare is cheaper at about $2.00 dollars one way.

You can also travel by train which leaves from the Corozal terminal at 007:15 a.m. and returns at 17:15 p.m. One way tickets are priced at $20 dollars and return at $35 dollars.

The Colon Free Zone not only is a vital installation when it comes to catering to a global market, but is also an important tourist destination. With its strategic geographic placement and high business turnover the role of the CFZ as an important business sector is only going to grow.

Please contact us if you have any queries or questions.