Press Release

Panama concludes update of the General Merchant Marine Law
Panama - May 11, 2023 ---The Panama Maritime Authority (AMP) and Panama’s main
maritime associations concluded the meetings for the revision of the General MerchantMarine Law, law 57 of August 6, 2008.
A total of 188 articles were reviewed; 70 were modified; 10 were eliminated and morethan 12 new articles were proposed, and all of them were approved in consensus.
These amendments aim at improving the competitiveness of the Panama Ship Registry
for remaining at the forefront of the maritime sector.
This project, considered to be one of the pillars of the present Administration,
contemplates an aggressive and comprehensive international marketing plan, thecreation of new departments, reassignment of functions to existing departments orsections and the adoption of new technologies accompanied by the reengineering andreorientation of the Registry.
For this Administration, the need to revise the business model and update Law 57 to thestandards and requirements of the industry, became urgent. A national dialogue wascalled for since the Ship Registry is everyone's responsibility and a source of foreignexchange for Panamanians.
The international competitiveness, the dynamic and constant changing international
maritime sector and the Ship Registry’s collateral business, required a country’s strategy
based on clear and transparent legislation that contributes to a sustainable growth of theactivity.
This process began in 2020 and by 2023, the meetings led to a complete review andupdated standard that offers answers to customers and is adjusted to the international
market where the Ship Registry can compete equally with other non-state registries thatoffer innovative options to shipowners.
The revision of the General Merchant Marine law brought several novelties, amongthem:• Obtaining the Navigation Patent through a straightforward process, without needing aprovisional navigation patent. This generates compliance, saves costs and efficiency
in the process of obtaining the title deed, and registration of the ship's mortgage.

The elimination of the expiry date of the statutory navigation patent and the statutory
radio license for international service vessels gives benefits to the client and to Panama
a more competitive position in the market. The vessel has a unique registration number,
resulting in better control and follow-up in the administrative and documentary part ofthe vessel.
The modification of the notification process within the administrative framework of theDirectorate General of Merchant Marine, allowing special notifications by e-mail insteadof the edicts placed in the Department of Resolutions and Consultations. This change
introduces agility and speed in administrative processes.
The Register of Resident Agents of National Merchant Marine Vessels is created,allowing the identification of measures that will strengthen due diligence and theobligations they must comply with at the international level; it generates better controland administration of the resource.
The obligation to previously register the title of ownership of the seller of a vessel within
the change of ownership procedure, is created. This ensures greater transparency andsecurity in transactions.
Legal security for mortgage creditors of vessels registered in Panama is reinforced:
From now on, the cancellation of a vessel will not affect the validity of mortgages
previously registered in the General Directorate of Public Registry of Ship Ownership of
the Panama Maritime Authority (AMP).
A new Incentive Regime is proposed which should promote the growth of thePanamanian fleet.
The working group was made up of various members of the maritime sector,
associations and public entities such as the Ministry of Foreign Affairs (MIRE), thePublic Registry of Panama (RPP), the National Air and Naval Service (SENAN), theAquatic Resources Authority (ARAP), Panamanian Association of Maritime Law(APADEMAR), the National Bar Association (CNA), the National Association ofSeafarers (CONAGEMAR), the Panamanian Association of Marine Officers (APOM), theAssociation of Panamanian Shipowners (ARPA), the Recognized Organizations (IARO),
the Panama Chamber of Shipping (CMP). For the order and transparency of thisproject, the Inter-American School for Social Dialogue and Tripartism of the University ofPanama (EI-DiSTReC) provided support.