Panama offers shipping registration privileges

Panama offers shipping registration privileges

JAKARTA (JP): Panama, whose flag is flown on 100 Indonesian
ships, is inviting more ship owners to take full advantage of the
services provided by its "flag of convenience".

"The Panamanian registry offers many facilities which might be
of considerable interest to ship owners," Panama's Consulate-
General Raul A. Eskildsen told The Jakarta Post at his office
here yesterday.

"The main point of this is that the taxes are very low at the
Panamanian registry," he said, adding that 13,000 ships are now
registered in Panama.

The "flag of convenience" allows ship owners all over the
world to avoid heavy taxes imposed by many maritime nations, he
said.

Panama's national merchant marine was set up 70 years ago when
restrictions on residence and nationality were discarded. It now
boasts one of the world's largest fleets and recorded a 13
percent growth rate last year.

"Any person or company, regardless of nationality and place,
is eligible to register ships under the Panamanian flag,"
Eskildsen said.

One of the most important facilities available in Panama is
the Colon Free Zone, which is the second largest zone of its kind
after Hong Kong.

"Most of the re-exportations in the Colon Free Zone go to
South American countries," he explained.

Ekildsen also hoped to clarify any confusion that has been
caused by the presence of the former Consul-General, Eduardo
Arango.

"The Panama General Consulate in Jakarta is the only one legal
representative to act on behalf of the government," Ekildsen
declared, explaining that Arango left the post three months ago
and is no longer authorized to act in the area of Panama's
maritime affairs.(mds)