Project LT-AMP-039 MODERNIZATION OF THE MERCHANT SHIPPING LEGISLATION

1. Project LT-AMP-039MODERNIZATION OF THE MERCHANT SHIPPING LEGISLATION Merchant Marine Committee

2. THE MARITIME CODE • Four separate laws regulating: The Merchant Marine Port activities The Substantive law (Commercial Code) The Procedural law

3. Assessment of the Current Regulatory Framework • It preserves the basic elements that has allowed the development of our Merchant Marine to be the largest in the world; • It is extremely proliferous (integrated by over 65 principal pieces of legislation – laws, decrees, law decrees, executive decrees, etc.); • It is scattered (integrated by 197 Resolutions, 274 circulars, 29 memorandums, 51 directives, etc); • In certain aspects it is outdated and contain inconsistencies; • The date to day activities are complemented by the development of certain administrative procedures that lack proper legal support.

4. Characteristics of the new Act In order to preserve the competitiveness of Panama the new law must be: (a) flexible; (b) dynamic; (c) adaptable to changes in the maritime industry; and, (d) maintain an adequate balance of responsibility of all parties involved.

5. Mision To propose the promulgation of a new law that would create an integral regulatory framework for the Merchant Marine of the Republic of Panama balancing the needs of a competitive maritime industry and the international responsibility of the Republic.

6. Main Topic Covered by the Act • Registration of vessels under the Panama flag; • The special forms of registration (bareboat registration, temporal registration, registration of pleasure boats); • The roles of the Consulates, Economic Commercial Offices and other official representations of the Republic of Panama vested with maritime duties; • Maritime Safety (inspections, casualties, etc.); • Auxiliary Entities; • Maritime Communications; • Sanctions (to the vessel, to auxiliary entities, to the surveyors / inspectors). • Registration incentives to reduce the age of the fleet, promote the loyalty to the flag and to promote new registrations.

7. Highlights from the Shipowners Point of View • The integral regulation of the procedure of registration of vessel under the Panama flag; • Introduction of additional tools to facilitate the transactions involving Panamanian registered vessels (new certifications, preliminary deletion certificates, etc); • The introduction of a new administrative procedure, with the participation of the Shipowner, before sanctions are imposed by the Panama Maritime Authority; • Incentives for new registrations; • Greater flexibility to the AMP to accommodate the needs of the Maritime Industry and international regulations; • Clear rules and procedures for the benefit of local and international users; and, • Has allowed a more interactive communication between the private sector with the Panama Maritime Authority which undoubtedly will improve the quality of the services.

8. PERMANENT MEMBERS OF THE COMMITTEEMeetings held: 82 • Gicela R. de Kinkead – PRIVATE SECTOR • Francisco Augusto De León - AMP • Jazmina Rovi – PRIVATE SECTOR • Elena C. de Olmedo - AMP • María Teresa Díaz - PRIVATE SECTOR • César Castillero Pereira - PRIVATE SECTOR • Santiago Torrijos - PRIVATE SECTOR • Marissa Moreno - PRIVATE SECTOR • Jorge Ramírez Arias – PRIVATE SECTOR • Fernando De Mena – AMP • Nelly González Hernández – AMP • Alfonso Castillero – AMP • Fernando Solórzano – AMP • Gian Castillero Guiraud – PRIVATE SECTOR • Maribel Barreiro - AMP

9. Thank you