WORKING GROUP MAKES SIGNIFICANT PROGRESS ON
MODIFICATIONS TO GENERAL MERCHANT MARINE LAW
The revision of Law 57 of 6 August 2008 General Merchant Marine, one of thepillar projects of the Panama Maritime Authority (AMP) current administration, isprogressing steadily through a working group composed of various stakeholders
in the maritime sector and facilitated by the University of Panama’s InterAmerican School of Social Dialogue and Tripartism (EI-DiSTReC), aiming atincreasing the Panama Ship Registry’s competitiveness.
This review, that has been elevated to ‘Country Strategy’, focus on a clear andtransparent legislation that contributes to the sustainable growth of the activity.
The proposal contemplates a new flag procedure within the framework ofcompetitiveness, compliance and technology that facilitates the registration ofthe vessel. Currently, progress has been made on the following:
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It will be possible to obtain the statutory patent with a unique number
directly without having to obtain a provisional navigation patent.
The regulatory navigation patent and the regulatory radio license forinternational service vessels will not have an expiry date, generating abenefit to the client, thus entering the line of competitiveness within themarket. This, except for special circumstances depending on the type ofvessel, a particular vessel, or the interests of Panama.
The possibility of entering the application for the flagging of vessels bymeans of an interested party with sufficient power of attorney granted by
the owner of the vessel is enabled.
In the regulations related to the judicial sale, the additional concept of"Public Auction" is included to allow the possibility of the full cancellationof the vessel, not only in cases of sale ordered by a maritime court ofjustice, but also when the vessel has been sold at public auction carriedout by an administrative authority.
The form of notification within the administrative process of theDirectorate General of Merchant Marine is modified to allow in a special
way notifications by e-mail, instead of an edict on the mural in theDepartment of Resolutions and Consultations. This adjustment within thelegal framework streamlines the processes for clients and for continued
compliance as a Registry.

Panama as a State-owned Ship Registry requires international strategies ofcompetitiveness that contribute to the sustainable growth of the activity,
according to the international maritime industry with permanent market analyses
to promote the registration in Panama’s merchant fleet of new vessels and theretention of the registered tonnage leading to expand the framework for issuing
waivers and/or economic proposals as deemed appropriate.

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As part of the strengthening at international level, of legal certainty- a uniqueadvantage of Panama, it is established that:

Within the change of ownership procedure, it is established the obligationof prior registration of the title deed of the seller of the vessel.
The legal security for mortgagees of vessels registered in Panama isreinforced, since the ex officio cancellation of the vessel will not affect thevalidity of the mortgage previously registered in the General Directorateof Public Registry of Ship Ownership of the Panama Maritime Authority(AMP).

The working group is made up of various members of the maritime sector,
unions and public entities such as the Panama Maritime Law Association(APADEMAR), the National Bar Association (CNA), the National Naval Air
Service (SENAN), the Association of Panama’s shipowners (ARPA), theNational Association of Seafarers (CONAGEMAR), the Panamanian
Association of Marine Officers (APOM), the National Chamber of Fisheries andAquaculture of Panama, the Recognized Organizations (IARO), the Panama
Chamber of Shipping (CMP), the Aquatic Resources Authority (ARAP), theMinistry of Foreign Affairs (MIRE), the Public Registry of Panama (RPP) and theJudiciary through the Maritime Courts.
On behalf of the AMP, participate the Directorate General of Merchant Marine(DGMM), the Directorate General of Public Registry of Ship Ownership(DGRPPN), the Directorate General of Seafarers (DGGM), the Directorate
General of Ports and Auxiliary Maritime Industries (DGPIMA), the Legal Advice
Office, the Directorate of Finance, among others.
The EI-DiSTReC of the University of Panama, an academic and scientific bodyspecialized in the promotion of social dialogue, Tripartism and conflict resolution,
has acted as a facilitator of this national dialogue.

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