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In a move aimed at taking
advantage of opportunities in vessel flag
registration in the wake of expansion of
merchant fleets in the region, Panama, a leading
flag-state country, is opening its Panama
Maritime Affairs Liaison Office in Kuala Lumpur.
The Transport Minister, Dato Sri Chan Kong Choy
will officiate the liaison office on 14 December
which will collaborate with Incosia Maritime Sdn
Bhd to attract Malaysian as well as other
shipowners in the region to register their
vessels under Panama flag.
Panama, which offers attractive terms and
conditions for non-residents to register their
vessels in the state, including the popular
“Dual Registry System.”
Ship owners who wish to transfer their vessels
to the Panamanian registry are not required to
have the vessels re-surveyed, provided the
vessels possess valid safety certificates.
Provisions are made to accept foreign tonnage
certificates at the moment of registration; this
obviates the necessity to have the ship dry
docked prior to the registration and
consequently saves the ship owners considerable
expenses.
A major attraction of the Panamanian registry is
the so called "Dual Registry". The Dual Registry
System" was established in Panama by means of
Law No. 1 of 1973 and later altered by Law No. 3
also in 1973.
According to these laws, a foreign vessel, bare
boat chartered for a period of two years can be
registered in Panama for the same period without
losing its previous registration, and the
opposite is also permissible, that is, from
Panama to the other countries.
For this purpose a Certificate of Consent from
the country where the vessel was originally
registered will be required.
The "Dual Registry System" represents a great
advantage for the Shipping community, especially
for the ship owners who, for some reason or
other, have no vessels under the open registry.
The dual registry may be considered an answer to
the problems confronted by the European Ship
owners faced with the high cost of operation
represented by having vessels flying the flags
of most European countries versus those under
open registries.
The Dual Registry System represents a great
advantage for the shipping community, especially
for the ship owners who, for some reason or
other, have no vessels under the open registry.
The dual registry system may be considered an
answer to the problems confronted by the
European ship owners faced with the high costs
of operation re[resented by having vessels
flying the flags of most European countries
versus those under open registries.
The Dual Registry if no longer reciprocal,
however, any vessel from any nationality may be
able to apply to the Panamanian Registry only
if, the register of her home country allows it. |
