What is dual registry ?

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FOLLOW

Under bareboat charter, a shipowner leases a ship to an operator – the charterer – which becomes responsible for the operation of the vessel. According to Panamanian Law, which allows Dual Registry, that vessel, already registered in one state, may be registered under the flag of another state for the duration of the charter (up to two years, renewable).

The dual registry system allows a charterer, leasing a ship registered in a country without an open registry, to benefit from the advantages of the Panamanian Registry. It also allows the shipowner to maintain the original registration, which is merely suspended during the dual registration but regains its effectiveness upon termination of the charter. The authorization of the original flagging state, as well as the shipowner's, is necessary. The Consulate is allowed to handle the required procedure.