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

2. THE MARITIME CODE Four separate laws regulating: 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 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 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); It is scattered (integrated by 197 Resolutions, 274 circulars, 29 memorandums, 51 directives, etc); In certain aspects it is outdated and contain inconsistencies; In certain aspects it is outdated and contain inconsistencies; The date to day activities are complemented by the development of certain administrative procedures that lack proper legal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. 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. (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; Registration of vessels under the Panama flag; The special forms of registration (bareboat registration, temporal registration, registration of pleasure boats); 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; 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.); Maritime Safety (inspections, casualties, etc.); Auxiliary Entities; Auxiliary Entities; Maritime Communications; Maritime Communications; Sanctions (to the vessel, to auxiliary entities, to the surveyors / inspectors). 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. 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; 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); 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; 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; Incentives for new registrations; Greater flexibility to the AMP to accommodate the needs of the Maritime Industry and international regulations; 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, 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. 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 COMMITTEE Meetings held: 82 Gicela R. de Kinkead – PRIVATE SECTOR Gicela R. de Kinkead – PRIVATE SECTOR Francisco Augusto De León - AMP Francisco Augusto De León - AMP Jazmina Rovi – PRIVATE SECTOR Jazmina Rovi – PRIVATE SECTOR Elena C. de Olmedo - AMP Elena C. de Olmedo - AMP María Teresa Díaz - PRIVATE SECTOR María Teresa Díaz - PRIVATE SECTOR César Castillero Pereira - PRIVATE SECTOR César Castillero Pereira - PRIVATE SECTOR Santiago Torrijos - PRIVATE SECTOR Santiago Torrijos - PRIVATE SECTOR Marissa Moreno - PRIVATE SECTOR Marissa Moreno - PRIVATE SECTOR Jorge Ramírez Arias – PRIVATE SECTOR Jorge Ramírez Arias – PRIVATE SECTOR Fernando De Mena – AMP Fernando De Mena – AMP Nelly González Hernández – AMP Nelly González Hernández – AMP Alfonso Castillero – AMP Alfonso Castillero – AMP Fernando Solórzano – AMP Fernando Solórzano – AMP Gian Castillero Guiraud – PRIVATE SECTOR Gian Castillero Guiraud – PRIVATE SECTOR Maribel Barreiro - AMP Maribel Barreiro - AMP

9. Thank you