T R A N S L A T I O N REPUBLIC OF PANAMA MINISTRY OF AGRICULTURE DEVELOPMENT. EXECUTIVE DECREE No. 161 (June 6, 2013)

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1 T R A N S L A T I O N REPUBLIC OF PANAMA MINISTRY OF AGRICULTURE DEVELOPMENT EXECUTIVE DECREE No. 161 (June 6, 2013) Which establishes the mechanisms for inspections, surveillance and control of capture and support fishing operations to the international service Panama flag vessels THE PRESIDENT OF THE REPUBLIC In use of his legal and constitutional faculties WHEREAS: That the Aquatic Resources Authority of Panama, created by means of Law No. 44 of November 23, 2006 is the governing entity of the State responsible to secure the fulfillment and implementation of the laws and regulations on aquatic resources and the national policies on fishing and aquiculture adopted by the Executive Branch of the State; That the Aquatic Resources Authority of Panama, within the scope of its duties will be represented before the Executive Branch by the Ministry of Agricultural Development; Following the Principles of Fishing Management, it is the duty of the State adopts necessary measures for the long-term conservation and sustainable use of fisheries resources, as a precautionary measure, in order to control the availability of theses resources for the present and future generations. That the Aquatic Resources Authority of Panama, in accordance with paragraph 2 and 3 of article 4 of the aforementioned legal code, has as function to regulate, promote and implement the measures and technical and administrative proceedings for the rational, suitable and responsible use of the aquatic resources, in order to protect the national aquatic heritage and contribute to protect the environment, as to comply and enforce the agreements and international conventions to which the Panamanian State is signatory concerning of its expertise. That the Panama State within the implementation of the risk concept based on cross-check of systematic and widespread information, shall establish unified and coordinated proceedings at land and sea throughout marketing chain, including captures to secure balanced conditions for fishing industry, which take into account the differences between the various segments of the fleet. RESOLVED: ARTICLE 1. To establish the mechanisms for inspections, surveillance and control with the purpose of securing the fulfillment of the national and international regulations to the Panama flag fishing vessels of international service. ARTICLE 2. The present Executive Decree shall be applied to all capture and/or support Panama flag fishing vessel of international service without prejudice of the responsibility of the State.

2 ARTICLE 3. For the purposes of the present Executive Decree, the terms used herein shall be understood in accordance to the following definitions: 1. Fisheries Monitoring and Control Centre: means an operational centre established and equipped with computer hardware and software enabling automatic data reception, processing and electronic data transmission coming from satellite communication equipment installed onboard of the fishing vessels called VMS (Vessel Monitoring System) 2. Landing: means the initial unloading of any quantity of fisheries products from a fishing vessel to land; 3. Fishing vessel: Every capture and fishing support vessel registered under the national flag; 4. Risk management: means the systematic identification of risks and the implementation of all measures necessary for limiting the occurrence of these risks. This includes activities such as collecting data and information, analyzing and assessing risks, preparing and taking action, and regular monitoring and review of the process and its outcomes, based on international, community and national sources and strategies; 5. Surveyor: means the person appointed by the Aquatic Resources Authority of Panama to perform an inspection to the fishing vessel. 6. Observer: means a person authorized for monitoring and gathering information about captures objective or not, transshipment and processing of the fishing vessel; 7. Operator: means the natural or legal person who operates or holds any business carrying out any of the activities related to any stage of production, processing, marketing, distribution and retail chains of fisheries and aquaculture products; 8. Risk: means the likelihood of an event that may occur and would constitute a violation of National and International Laws concerning fisheries policy; 9. Automatic Identification System: means an autonomous and continuous vessel identification and monitoring system which provides for vessels to electronically exchange with other nearby vessels and authorities ashore vessel data including identification, position, course and speed; 10. Vessel Detection System: means a satellite based remote sensing technology which allow identify vessels and detect their positions at sea; 11. Transshipment: means the unloading of all or any fisheries or aquaculture products on board a vessel to another vessel; 12. Processing: means the process by which the presentation was prepared. It includes filleting, packing, canning, freezing, smoking, salting, cooking, pickling, drying or preparing fish for market in any other manner; 13. Surveillance: means the observation of fishing activities from sightings made by inspection vessels or official aircrafts and technical detection and identification methods; 14. Fishing Restricted Area: means any marine area under the jurisdiction of a State which has been defined as an area where fishing activities are either limited or banned. ARTICLE 4. The control of fishing and fishing support activities included in the scope of implementation that shall be made by natural of legal persons in the national land, high sea, jurisdictional water, in particular fishing activities, transshipment, transfer of fish to cage or aquatic installations, as well as fattening, landing, imports, transport, processing, marketing and hold of fisheries and aquaculture product is established. ARTICLE 5. Without prejudice of the implementing provisions, the masters of the fishing vessels whose length overall is equal or higher than twenty (20) meters length, shall hold a fishing logbook of its operations, indicating expressly all quantities of each species caught. The Masters shall be responsible of: 1. The accuracy of the data detailed in the fishing logbook. 2. To register the information referred to in the logbook by electronic media and shall send such information by an authorized electronic media to the relevant authority in a

3 maximum term of four (4) hours after the last fishing operation has been completed or each fishing operation made in one day. ARTICLE 6. In the Fishing Logbook referred to in the above article shall be registered the following information: 1. The identification number and name of the fishing vessel. 2. Date (m/d/y), number of sets (consecutive for trip) time of initiation (24hours) and initiate position (grades/minutes) time of completion and position of set. 3. The common name of the captures in Spanish or English as per alpha-3 code of the Food and Aquaculture Organization of the United Nations (FAO) of each species and the relevant geographical area in which the catches were taken. 4. The date of departure from and of arrival to port, and the duration of the fishing trip. 5. The type of gear. 6. Composition of the estimated quantities of each species in metric tons, where appropriate, the number of individuals. 7. The permitted margin of tolerance in estimates recorded in the fishing logbook of the quantities metric tons of fish retained on board shall be ten percent 10 % for all species 8. The number of fishing operations. ARTICLE 7. The Aquatic Resources Authority of Panama shall establish the mechanism and regulations of the authorized electronic media for such purpose. ARTICLE 8. The capture and fishing support vessels should comply with the prior notification to the Flag State and Port State Control as follows: 1. The Masters of the capture vessels as far as make the ETA calculation (Estimated Time of Arrival) to enter a port whether for discharge or for any other reason shall notify the authorities of the Flag about the port of destination and estimated time of arrival. The vessels fishing within two hundred (200) miles or less of the coast, should notify the Flag State as far as it completes the eighty percent (80%) of the cargo capacity. The vessels fishing in international waters should inform to the Flag State as far as it completes the ninety percent (90%) of the cargo capacity. Every vessel with fishing license after completing the one hundred percent (100) of the cargo should notify no later than twelve (12) hours after such event and inform the date, estimated place and Port of Arrival. In case of change of course and port the vessel should also notify once this event occurs. The vessels with fishing support license should notify the date and time immediately knows the port of destination, likewise, notify any change immediately it occurs. 2. The fishing vessel and fishing support vessel flying the Flag of Panama should notify with a minimums of twenty four (24) hours before arriving to the Port State Control. The fishing vessel and fishing support vessel once makes the prior notification of the date and estimated time of arrival (ETA) to the port, should give the following information: a. IMO Number, MMSI number and name of the fishing vessel. b. the name of the port of destination and the purposes of the call, such as landing, transshipment or access to services. c. the dates of the fishing trip and the relevant geographical areas in which the catches were taken d. the estimated date and time of arrival at port e. the quantities of each species recorded in the fishing logbook. f. the quantities of each species to be landed or transshipped 3. The Republic of Panama shall establish with other coastal State, agreements about the exchange of information and prior notification when a vessel with fishing license or fishing support license flying the flag of Panama intends to enter a port in a State other than the Flag State. 4. The accuracy of the data recorded in the prior electronic notification shall be the responsibility of the master.

4 ARTICLE 9. When a Panama flag fishing vessel intends to enter a port of other State, the Panama State based on the principle of reciprocity shall request to the competent authorities of the coastal State the transmission of information by electronic media or written related to the request of enter to the port, Declaration of Fishing Product or any other information of the activity made by the vessel. ARTICLE 10. When a foreign fishing vessel intends to enter a national port, should notify by a term no less than twenty four (24) hours to the Aquatic Resources Authority of Panama for the relevant process, enclosing the information detailed in article 8. In case of noncompliance of the present article, the relevant authority may deny the access to the port. ARTICLE 11. The national flag vessel with fishing support license of international service should comply with the following responsibilities: 1. To take an observer on board and give him accommodation, food and facilities to make his work duties. 2. It is forbidden to receive transshipment from vessels without a transshipment authorization of its National Flag, or that are not registered as authorized fishing vessels to transship or without a current fishing license, or if they belong to a same economic group owner of a vessel identified as a vessel which practice an Illegal, Unreported and Unregulated Fishing (IUUF). 3. It is forbidden to receive transshipment from fishing vessels identified as Illegal, Unreported and Unregulated Fishing (IUUF) or if it is presumed they are practicing IUUF. ARTICLE 12. The observer on board shall comply with one o more of the following functions: 1. Gathering basic information of each fishing operation; 2. Observation and measurement of fishing gears; 3. Observations during transshipment exercises; 4. Making regular verifications of the record methods of capture s vessel, as defined in the regulations. 5. Supply a detailed report by means of writ, describing the work activities assigned; 6. Controlling the Global Plan of fishing vessel related to the fishing strategy performed by the Master and the restrictions imposed by the regulations; 7. Any other additional work that may determine the Aquatic Resources Authority of Panama to improve his activities. ARTICLE 13. The observer on board fishing vessels shall be responsible to inform about the compliance of the rules regarding fishing areas, fishing gear, authorized fisheries, method used to fulfill the fishing logbook, report of capture and additional capture restrictions. ARTICLE 14. The national flag vessels of international service, with fishing support license duly authorized to perform transshipment, through its shipowners and/or representative shall pay the expenses and costs of the observers program on board of such vessels, whether regional or national. ARTICLE 15. The observers on board shall receive a similar treatment that the rules, usages and customs granted to an official on board. The shipowner should instruct the Master of the vessel about the responsibility to give all necessary cooperation to secure the effective performance of the functions of the observer on board. For that purpose the shipowner should: 1. Allow the assigned observer boards the vessel in order to perform his work duties and the observer should remain on board all the necessary time to fulfill the functions required. 2. Provide the observer access to all parts of the vessel related to fishing, processing and hold operations of fishing products. 3. Provide the observer the catch, production and navigation documents as required.

5 4. Allow obtaining image files and/or videos on board of the vessel including fishing operations, gears and fisheries equipment. 5. Facilitate, at the observer s request, message sending and receiving by means of communications equipment available on board. ARTICLE 16. In the event of failure to comply with the rules and functions assigned, due to the shipowners or for any other reason, the observer on board may require appropriate action to the Aquatic Resources Authority of Panama in order to carry out such compliance. ARTICLE 17. Once the voyage is completed, and within the period established for the purpose by the Aquatic Resources Authority of Panama, the observer on board should file an exhaustive report of the performed activities on board in compliance with the rules assigned, together with all the relevant documentation. The information issued should be liable to the indicated guidelines in this respect, as far as the context, presentation and basis established for the same. ARTICLE 18. The observer on board should protect the confidentiality of the information obtained from the works performing on board and only communicate it to the Aquatic Resources Authority of Panama, therefore, organism, office or any person can not communicate such information in express part or all, except written authorization of the Aquatic Resources Authority of Panama, where should specify the scope of the same. This reserve obligation of the information shall be in force in the event the observer on board is not linked with his works, assuming the responsibility for the damage and prejudice that may cause spreading data or reports obtained in the exercise of his duties. ARTICLE 19. The noncompliance of the obligations by the shipowners established in the present Executive Decree shall result an opening of administrative penalty proceedings and the suspension of the fishing license in accordance with the provisions of Law 44 of November 23, 2006, article 297, Legal Code and the relevant statutory regulation thereof. ARTICLE 20. The transshipment of fisheries resources is permitted in the following conditions: 1. In high sea if the vessel has a duly authorized observer on board. 2. In a duly authorized port. The transshipment may be only performed with previous authorization and with the conditions established in the present Executive Decree. If the transshipment operation is interrupted, permission may be required before the transshipment operation is resumed. For the purposes of this Article, relocation, pair trawling activities and fishing operations involving joint action by two (2) or more capture fishing vessels shall not be considered as transshipment. ARTICLE 21. Without prejudice to specific provisions, masters of fishing vessels and fishing support vessels involved in a transshipment operation shall complete a transshipment declaration, indicating specifically all quantities of each species transshipped or received live weight equivalent. The accuracy of the data recorded in the logbook shall be the responsibility of the master. The transshipment declaration referred to in paragraph 1 shall contain at least the following information: 1. IMO Number and the name of both fishing vessels; 2. Alpha-3 code of the Food and Aquaculture Organization of the United Nations (FAO) of each species and the relevant geographical area in which the catches were taken; 3. The estimated quantities of each species in kilograms in product weight, broken down by type of product presentation or, where appropriate, the number of individuals. The permitted margin of tolerance in estimates recorded in the transshipment declaration of the quantities in kilograms of fish transshipped or received shall be ten percent 10 % for all species. 4. The designated port of transshipment;

6 5. The port of destination of the receiving fishing vessel. ARTICLE 22. The masters of both the transshipping and the receiving fishing vessel shall each submit a transshipment declaration, as soon as possible and not later than 48 hours after transshipment; provided that, those vessels shall be Panamanian flagged vessels, otherwise the receiving fishing vessel should collect this information once it makes the transshipment. ARTICLE 23. The masters of the receiving fishing vessel shall register by electronic media the information referred to in article 12 and sent it through an electronic media, authorized by the competent authority in real time. The competent authority shall establish mechanism and regulations of the authorized electronic media for such purpose. ARTICLE 24. The Master of fishing or his representative should notify by a term no less than twenty four (24) hours to the Aquatic Resources Authority of Panama about the landing and furnish a declaration of landing where mention all quantities of each species to be landed with the following information: 1. IMO number and name of the fishing vessel. 2. Alpha-3 code of the Food and Aquaculture Organization of the United Nations (FAO) of each species and the relevant geographical area in which the catches were taken; 3. The quantities of each species in tons of product weight, broken down by type of product presentation or, where appropriate, the number of individuals. 4. The port of landing. The accuracy of the data recorded in the declaration of landing shall be the responsibility of the master. ARTICLE 25. The declaration of landing referred to in the above article should be send to the Aquatic Resources Authority of Panama by written or electronic media. ARTICLE 26. The landing of fisheries product of the capture or support fishing vessels should be surveyed at port by an authorized marine resources surveyor o by a surveyor of the Recognized Fisheries Organization and shall file a bill of landing no later than forty eight (48) hours after completion of the landing to the Aquatic Resources Authority of Panama. The cost of inspection referred to in this article shall be borne by the capture or support fishing vessel in accordance with the established. ARTICLE 27. The designated and authorized port for landing fishing product from fishing vessels or support fishing vessels shall be ruled by the Aquatic Resources Authority of Panama. ARTICLE 28. The fishing activities of the fishing vessel shall be subject to the conservation measures, laws, rules, regulations and recommendations of the Coastal State and Regional or Sub-regional Fisheries Management Organization (OROP as per its initials in Spanish). ARTICLE 29. Every fishing vessel that is not authorized to fish in fishing restricted areas may transit in such area if they comply with the following conditions: 1. All gears carried on board are lashed, disconnected and/or stowed during the transit in the fishing area. 2. The speed during transit is not less than six (6) knots except in case of force majeure or adverse conditions. In such cases, the master shall immediately inform the Directorate General of Inspection, Security and Control of the Aquatic Resources Authority of Panama which shall then inform the competent authorities. The Directorate General of Inspection, Security and Control shall provide, on demand of the Recognized Fisheries Organization, all appropriated instruments of the national law whereby provisions of recommendations, resolutions and applicable rules of the fishing activities are enter into force, as well as the Recognized Fisheries Organization. The Recognized Fisheries Organization should be informed by electronic media about the national and international regulations where the Organizations and/or fisheries administrations made the discharge.

7 ARTICLE 30. To obtain the authorization as Recognized Fisheries Organization, the interested party should comply with the following requirements: 1. To demonstrate that it has the adequate technical, administrative and investigative resources to carry out the survey works on marine resources. 2. To demonstrate proficiency and technical, administrative and management capabilities to guarantee a quality timely service. 3. The application for authorization as Recognized Fisheries Organization must be submitted by a writ through an Attorney at Law enclosing the following documents: a. Power of Attorney in accordance with the corresponding legal requirements. b. Certificate issued by the Public Registry of Panama or its equivalent at the State of origin stating existence and legal representation of the company including date of incorporation, Board of Directors, Officers, Legal Representative and/or Attorney at Law in the Republic of Panama. c. Copy of the performance bond indicated at paragraph 4 of the present article. d. Marine Surveyor Resources Resume that shall act on behalf of the Recognized Fisheries Organization, describing technical training, experience and geographical distribution of the surveyor of the Recognized Fisheries Organization, enclosing copy of the certificates or diplomas which certify the suitability of the technical personnel of the organization. Every company must have a suitable Technical Chief and a technical group able to comply with the minimum regulations in order to perform marine surveys resources. e. Confirmation of the relative size, structure, experience and capacity of the company to allow the Fishing Administration assess the size and degree of authority to be conferred to the Recognized Fisheries Organization. f. Report with details of the activities carried out or to be carried out by the Recognized Protection Organization. g. The Recognized Fisheries Organization should have internal quality control system based on the relevant criteria on quality control recognized on an international level which degree of effectiveness shall not be less than the ISO- 9000/2000 series. h. Any other documents requested by the Authority of Aquatic Resources of Panama. 4. The Recognized Fisheries Organization that wish to carry out surveys to fishing or support fishing international services Panama flag vessels must post a performance bond in the amount of one hundred thousand dollars and 00/100 ($100,000.00) in favor of the General Comptroller Office of the Republic of Panama to cover damages and payments in concept of monetary penalties ordered by the by the Directorate General of Inspection, Security and Control of the Aquatic Resources Authority of Panama. ARTICLE 31. The Recognized Fisheries Organization should be certified by the Ministry of Commerce and Industries, Ministry of Foreign Affairs and subsequently approved by the Board of Directors of the Aquatic Resources Authority of Panama. ARTICLE 32. The Aquatic Resources Authority of Panama may establish sanctions in accordance to article 53 and 54 of Law 44 of November 23, ARTICLE 33. The Aquatic Resources Authority of Panama may supervise, survey, watch, control, register, monitor and investigate premises, business, fishing ground and offices, located in the Republic of Panama that perform stock, import, export, processing, distribution and marketing of aquatic resources due to national and international fishing with the purpose of fulfill and enforce the current legal regulations related to aquatic resources. ARTICLE 34. The performance bond shall not be subject to seizure and will be at the disposition of the Aquatic Resources Authority of Panama, in order to secure the payment of

8 obligations of the Recognized Fisheries Organization or payment of fines on the sanctions that may be imposed to them. ARTICLE 35. Return of the performance bond will be ordered by the Directorate General of Inspection, Security and Control of the Aquatic Resources Authority of Panama by reasoned decision once it has been established that the company finished its activities and fulfilled all its obligations and it will take all necessary measures to ensure that said organization keep these performance bond all the time. ARTICLE 36. In case where the Recognized Fisheries Organization applies for change of name it must submit: 1. Writ filed by an Attorney at Law, including application for change of name. 2. Authenticated copy of change of company name. 3. Authenticated copy of registration of the company. ARTICLE 37. The Aquatic Resources Authority of Panama will approve or reject the applications of authorization or extension of authorized delegation filed by means of reasoned decision in accordance with the technical and security conditions. In case the application is approved, the bond mentioned at paragraph 4 of article 30 of the present Executive Decree must indicate the new name of the Recognized Fisheries Organization and the resolution will come into force once the authorization is issued. ARTICLE 38. The Recognized Fisheries Organization can not be sold or transferred to another Recognized Fisheries Organization or economic group, without prior notification by the Aquatic Resources Authority of Panama. ARTICLE 39. The Aquatic Resources Authority of Panama by means of the Directorate General of Inspection, Security and Control shall perform regular audits with the purpose of ensuring the management carried out by the Recognized Fisheries Organization. ARTICLE 40. The Recognized Fisheries Organization shall provide to the Aquatic Resources Authority of Panama, access to its data base, related to vessels and certificate of inspection issued by virtue of the delegations granted. For that effect, the Recognized Fisheries Organizations must furnish access passwords and instructions to verify it and become effective. ARTICLE 42. The Aquatic Resources Authority of Panama shall void the certificate of survey of fishing vessel or support fishing vessel in the following cases: 1. Irregularities in the performance of the duties delegated to the Recognized Fisheries Organization 2. If there is proof of incompatibility of the activities carried out by it or if there is a conflict of interest with the current regulations. 3. If there is proof of inaccuracy or deceit in the documents submitted or the amount of fish landing. a. If the Recognized Fisheries Organization fails to comply with the guidelines of the Aquatic Resources Authority of Panama. b. If the report of survey or certificate of survey is made by a surveyor that is not registered in the Aquatic Resources Authority of Panama. ARTICLE 43. The authorized Recognized Fisheries Organization within the terms established in the present Executive Decree, should coordinate with the Aquatic Resources Authority of Panama all respect to the recognition of the vessels and the issuance of the certificate of survey. Likewise, the Recognized Fisheries Organization must inform and register a directory of its technical personnel and shall furnish the information in respect to the number of technical

9 certificates of survey and technical information issued, reviewed and certified on the ships, as well as copy of the certificates. ARTICLE 44. The Aquatic Resources Authority of Panama shall from time to time, inform on the list of Recognized Fisheries Organizations and its approved surveyor to the Directorate General of Merchant Marine to be published in the webpage of Segumar. ARTICLE 45. The Aquatic Resources Authority of Panama shall prepare and adopt the survey proceedings. ARTICLE 46. Any other provision contrary to the present Executive Decree is repealed upon the entry into effect of this Executive Decree. ARTICLE 47. The present Executive Decree will come into force six (6) months after its enactment. SUPPORTING LAWS: Law No. 44 of November 23, BE IT NOTIFIED AND ENFORCED. Issued in Panama City on the 6 th day of June, (Sgd. Illegible) OSCAR ARMANDO OSORIO CASAL Minister of Agricultural Development. (Sgd. Illegible) RICARDO MARTINELLI B. President of the Republic of Panama IT IS A TRUE AND LAWFUL TRANSLATION INTO ENGLISH OF THE ATTACHED DOCUMENT WRITTEN IN SPANISH. Panama, June 28, 2013

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