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)